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Malicious actors posing as vendors allegedly hacked into the School District of Philadelphia’s banking system several times in 2024 and diverted a total of nearly $700,000 into their own accounts, Christy Brady, city controller, said Thursday.
Brady spoke about the cyberattack at a news conference at her office in the Municipal Services Building on JFK Boulevard. Schools Superintendent Tony Watlington Sr. and City Councilmember-at-Large Isaiah Thomas, chair of the body’s education committee, were among those in attendance.
According to Brady, the discrepancies in the district’s Automated Clearing House, or ACH, system were discovered during an annual audit of the school district’s fiscal year 2024. As part of the audit final review and feedback, the school district informed Brady about the payments.
“We learned of four instances that occurred last year regarding fraudulent ACH payments. On March 12, 2024, an ACH transfer for $563,151 was made for flood damage repair work,” Brady said. “Additionally, on Feb. 6, Feb. 27 and March 8, ACH transfers for payments totaling $126,056 were made for compensatory services.”
The investigation is ongoing, Brady said, adding that the payments have yet to be recovered and the vendors have not yet been paid. The individuals or entities who allegedly committed this cyberattack, along with the two vendors involved — and financial institutions affected — were not identified by Brady or the school district.
