SOMERS — The University of Wisconsin-Parkside discovered it was a victim of bank fraud when it was notified by a bank on June 19 of an issue involving a new account, a UW spokesman told the Kenosha News.
UW-Parkside, along with federal authorities, are now investigating what is being reported as bank fraud of about $315,000 against the institution.
Mark Pitsch, UW System spokesman, said some of the losses were recovered and insurance is “expected to cover much of the rest.” He said the net loss to Parkside will be about $65,000.
“The UW System is actively working with law enforcement authorities,” he said. Parkside police investigating the crime have notified the FBI and the Internal Revenue Service.
“A bank that was receiving electronic payments from the UW System flagged the transfer because of the newness of the receiving account and the type of payments,” Pitsch said.
“This situation resulted from a ‘phishing’ scam in which an employee changed bank account routing numbers for two UW System vendors.”
The fraud involved only financial accounts and no student information was compromised, he said.
When asked whether an arrest had been made, Pitsch said the university system does not discuss ongoing investigations.
Parkside officials could not be reached for comment despite multiple requests.