HARTFORD, CT (WFSB) -
More than $1.4 million was stolen from the Connecticut Higher Education Trust (CHET) after a security breach.
According to the state’s treasurer’s office, 21 CHET account holders had online access to their accounts established by an unauthorized individual that resulted in a total of 44 unauthorized withdrawals of funds totaling approximately $1,416,635.
Connecticut’s State Treasurer Denise Nappier said of the more than $1.4 million, $442,540 has been recovered or stopped.
An investigation is underway by federal, state, and local enforcement agencies.
As this investigation is underway, all account holders impacted by the breach will have their CHET accounts fully restored by Tuition Financing Inc. (TFI).
In addition, TFI will provide the account holders two years of identity fraud protection services, identity restoration services and $1,000,000 in identity theft insurance coverage.
Treasury Department officials said this is the first time, that they are aware, of fraudulent activity in CHET’s history.
“I am deeply concerned that these criminal activities have impacted CHET account holders. Until it happens to you, it’s hard to capture how unsettling it is when personal accounts have been compromised. I’ve been there. Every owner of the more than 150,000 CHET accounts can and should expect our vigilance and best efforts to ensure that their funds and information are protected,” Nappier said.
“CHET account data and online systems are housed at and maintained by TFI and its service providers. TFI has implemented system enhancements, additional internal controls, and extra manual reviews aimed at helping to protect against future fraudulent activity. The Treasury is closely monitoring these security initiatives. In addition, we have requested an independent audit of fraudulent account activity and an independent review of TFI’s cyber, telephone and manual security programs,” the treasury department said in a press release.
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