School Committee won't seek legal action against bank
After tri-town Selectmen found out about a 2011 cyber breach into an Old Rochester Regional account, they asked Superintendent Doug White and the ORR School Committee to see if they could recover the $34,000 that was never returned.
Following an inquiry, however, the School Committee has decided not to pursue further action.
A total of $134,767 was stolen from an ORR account with Unibank. The bank helped ORR recover approximately $100,000, according to White.
It was determined that security updates had not been done on one school computer, which left the system vulnerable to hackers.
As such, attorney Joshua Coleman, of Collins, Loughran & Peloquin, said he doubted the bank would return the remaining funds.
“The bank didn’t find any fault internally on their own end. It was a software issue on the part of the district,” Coleman said at a meeting with tri-town Selectmen.
Legal counsel filed a claim against the bank. The bank responded that it was not responsible for the breach.A signed agreement with the bank states, “the Customer shall be solely responsible for protecting against unauthorized access to the online cash management program…”
“I appreciate that you and our legal counsel had gone this extra step,” said Christine Marcolini. “We have a pretty clear response back.”
Committee member James Muse admitted that he didn’t know the full details of the issue, but questioned what other action could be taken.
“We may not take legal action, but we still have the question of whether we do business with them,” said Muse.
White said the decision was up to the committee, but also said Unibank was helpful following the breach.
“When it did happen, they were here immediately,” he said. “They were our best support.”
The committee decided against seeking further legal action.