Old Scam, New Headlines: Avoyelles Water System Clarifies Cyber Fraud
By Avoyelles Today Staff
This article is sponsored by PC911!
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A years-old cyber fraud incident involving a local water system resurfaced this week after being reported by another news outlet, prompting officials to clarify what happened, when it occurred and what steps have since been taken to protect the system.
Laurie Lemoine said the incident did not happen recently, but was discovered during an audit after what initially appeared to be legitimate QuickBooks technical support turned out to be what she described as a long-term “hostage scam.”
According to Lemoine, the situation began about two years ago when she experienced problems with QuickBooks and searched online for technical support.
“I called the tech support number off of the internet which looked exactly like Quick Books website,” Lemoine said.
She said the call was answered by a foreign representative, which did not immediately raise concerns because overseas technical support is common.
Lemoine paid for the technical support, the problem was corrected and the software operated normally for approximately a year.
When another problem developed later, she contacted the company again.
“They then said that we had to pay to update the part of QB that was not acting right and then created a VPN on my computer which they didn't exactly explain in those terms just instructed me on how to access my information,” Lemoine said.
The company identified itself as “Quick Books Services,” according to Lemoine.
Concerns arose later during an audit. Lemoine said the CPA reviewing the records believed something did not appear right. When the auditor arrived, Lemoine explained the situation and was told the computer may have been infected with a virus.
Computers 911 was then contacted to examine the system.
According to Lemoine, the company determined that she had become involved in what she described as a “long game scam,” in which scammers gain access to a computer and effectively take software or information needed by a business hostage.
“This is where they take your computer and take your software hostage,” Lemoine said. “It doesn't have to be quickbooks. It can be any software you need to access for business financials. They then make you pay to access your stuff.”
Lemoine said the scam differed from traditional schemes designed primarily to obtain banking information.
“This is the way they get your money now,” she said. “They don't want your bank acct numbers anymore with these kind of scams. It is more profitable and less can be done to them because technically you gave them permission.”
Lemoine said Cottonport Bank refunded $9,899 associated with the incident. The bank was unable to recover the remaining amount because of the length of time that had passed.
“But we are very grateful for their compassion and help,” she said.
The financial institution was notified of the incident, and Lemoine said the matter is also in the process of being reported to the proper authorities.
According to Lemoine, customers will not be affected financially by the loss. She said emergency funds were available to cover the cost and Cottonport Bank recovered a large portion of the money.
She added that errors and omissions insurance was available if needed, but no insurance claim was necessary.
Following the discovery, Computers 911 was hired to provide monitoring and technical support, including assistance with QuickBooks.
“They have helped us greatly,” Lemoine said, adding that she would recommend businesses consider having trusted local technology professionals monitor their systems and provide technical support.
Lemoine also emphasized that the incident is no longer an active agenda item for the board.
“This is not an agenda item anymore as the board knew the whole time and we just put this to rest so no need to go over it again,” she said.
The incident became a topic of discussion again this week after another news source reported on it. Lemoine told Avoyelles Today the matter was an older incident that had already been discovered through the audit process and addressed.
She said the experience illustrates the changing nature of scams targeting businesses and public entities.
“Scams are very common these days and they come from every direction,” Lemoine said.
She said cybersecurity remains an ongoing concern, particularly as water systems must protect not only financial and computer records but also the technology connected to providing safe drinking water.
For Lemoine, the financial portion of this particular incident has largely been resolved.
“The money part is recoverable in our case thank goodness,” she said.
The experience, she said, has served as a reminder that organizations must remain vigilant as cyber threats and scams continue to evolve.
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