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Port: 2 North Dakota universities nearly lost millions to ‘social engineering’ fraud

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Port: 2 North Dakota universities nearly lost millions to ‘social engineering’ fraud


MINOT — Amid the busy work of the Legislature’s efforts to organize an abruptly convened special session last week was a special meeting of the State Board of Higher Education.

The agenda for the meeting was vague, describing an executive session about the general topic of cybersecurity that would be closed to the public and the news media.

But hiding behind the anodyne meeting description was a significant financial breach at two North Dakota University System schools.

Jerry Rostad, vice chancellor of the NDUS, confirmed that approximately $5.1 million — including roughly $3.8 million from the North Dakota State University and $1.3 million from Bismarck State College — was accessed due to what he described as a “social breach.”

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“The University System is aware of a recent incident involving a fraudulent Automated Clearing House (ACH) transaction to a single entity, purporting to be a vendor, targeting a North Dakota University System (NDUS) accounting system,” NDUS Chancellor Mark Hagerott,

who was a distinguished professor of cybersecurity at the United States Naval Academy,

said in a statement passed through Rostad.

North Dakota University System Chancellor Mark Hagerott speaks at the inauguration of NDSU’s 15th President David Cook on Friday, Sept. 30, 2022.

Michael Vosburg/The Forum

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Essentially, some unknown entity posed as a contractor working with the schools and requested a change in bank account information. That request was forwarded to the NDUS office, and the change was made, at which point two fraudulent transfers of funds were initiated.

Rostad confirmed these details but said there was “no data breach.”

What happened was “social engineering” that fooled some personnel into falling for a ploy. Rostad said the NDUS has “controls in place that were supposed to catch it.” Some of those controls failed, but not all of them. “We were able to put a stop to it so we did have a control that worked,” he said.

The transfers were not completed, and the dollars weren’t lost, but Rostad said there’s “not much more we can say about it” as the NDUS continues to investigate the matter.

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“While no funds were lost, we are collaborating with local and federal authorities to identify the full scope of the incident,” Hagerott said in a statement. “We are also reviewing internal accounting protocols and procedures to ensure effective safeguards are enacted and enforced to prevent such an incident from reoccurring.”

Rob Port

Rob Port is a news reporter, columnist, and podcast host for the Forum News Service with an extensive background in investigations and public records. He covers politics and government in North Dakota and the upper Midwest. Reach him at rport@forumcomm.com. Click here to subscribe to his Plain Talk podcast.





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North Dakota

National monument proposed for North Dakota Badlands, with tribes’ support

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National monument proposed for North Dakota Badlands, with tribes’ support


A coalition of conservation groups and Native American tribal citizens on Friday called on President Joe Biden to designate nearly 140,000 acres of rugged, scenic Badlands as North Dakota’s first national monument, a proposal several tribal nations say would preserve the area’s indigenous and cultural heritage.

The proposed Maah Daah Hey National Monument would encompass 11 noncontiguous, newly designated units totaling 139,729 acres (56,546 hectares) in the Little Missouri National Grassland. The proposed units would hug the popular recreation trail of the same name and neighbor Theodore Roosevelt National Park, named for the 26th president who ranched and roamed in the Badlands as a young man in the 1880s.

“When you tell the story of landscape, you have to tell the story of people,” said Michael Barthelemy, an enrolled member of the Mandan, Hidatsa and Arikara Nation and director of Native American studies at Nueta Hidatsa Sahnish College. “You have to tell the story of the people that first inhabited those places and the symbiotic relationship between the people and the landscape, how the people worked to shape the land and how the land worked to shape the people.”

The U.S. Forest Service would manage the proposed monument. The National Park Service oversees many national monuments, which are similar to national parks and usually designated by the president to protect the landscape’s features.

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Supporters have traveled twice to Washington to meet with White House, Interior Department, Forest Service and Department of Agriculture officials. But the effort faces an uphill battle with less than two months remaining in Biden’s term and potential headwinds in President-elect Donald Trump’s incoming administration.

If unsuccessful, the group would turn to the Trump administration “because we believe this is a good idea regardless of who’s president,” Dakota Resource Council Executive Director Scott Skokos said.

Dozens if not hundreds of oil and natural gas wells dot the landscape where the proposed monument would span, according to the supporters’ map. But the proposed units have no oil and gas leases, private inholdings or surface occupancy, and no grazing leases would be removed, said North Dakota Wildlife Federation Executive Director John Bradley.

The proposal is supported by the MHA Nation, the Spirit Lake Tribe and the Standing Rock Sioux Tribe through council resolutions.

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If created, the monument would help tribal citizens stay connected to their identity, said Democratic state Rep. Lisa Finley-DeVille, an MHA Nation enrolled member.

North Dakota Gov. Doug Burgum is Trump’s pick to lead the Interior Department, which oversees the National Park Service. In a written statement, Burgum said: “North Dakota is proof that we can protect our precious parks, cultural heritage and natural resources AND responsibly develop our vast energy resources.”

North Dakota Sen. John Hoeven’s office said Friday was the first they had heard of the proposal, “but any effort that would make it harder for ranchers to operate and that could restrict multiple use, including energy development, is going to raise concerns with Senator Hoeven.”



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North Dakota

Two people hospitalized following domestic assault and shooting in Fargo, suspect dead

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Two people hospitalized following domestic assault and shooting in Fargo, suspect dead


FARGO — Two people were injured in a separate domestic aggravated assault and shooting Saturday, Nov. 23, and the suspect is dead from what appeared to be a self-inflicted gunshot wound, the Fargo Police Department said.

Fargo police were dispatched at 2:19 a.m. to a report of a domestic aggravated assault and shooting in the 5500 block of 36th Avenue South, a police department news release said.

When officers arrived, they learned the suspect had committed aggravated assault on a victim, chased that person into an occupied neighboring townhouse and fired shots into the unit.

Another person inside the townhouse was struck by gunfire, police said. Both victims were taken to a local hospital for treatment of non-life threatening injuries.

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Officers found the suspect’s vehicle parked in the 800 block of 34th Street North by using a FLOCK camera system to identify a possible route of travel from the crime scene, the release said.

Police also used Red River Valley SWAT’s armored Bearcat vehicle to get close to the suspect’s vehicle to make contact with the driver, who was not responding to officers’ verbal commands to come out of the vehicle.

The regional drone team flew a drone to get a closer look inside the suspect’s vehicle. Officers found the suspect was dead from what appeared to be a self-inflicted gunshot wound, the release said.

This investigation is still active and ongoing. No names were released by police on Saturday morning.

Anyone with information about this incident is asked to call Red River Regional Dispatch at 701-451-7660 and request to speak with a shift commander. Anonymous tips can be submitted by texting keyword FARGOPD and the tip to 847411.

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North Dakota

Illinois State Gets 1st Win Over North Dakota, 35-13

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Illinois State Gets 1st Win Over North Dakota, 35-13


 

(AP) — Wenkers Wright ran for 118 yards and two touchdowns and No. 13 Illinois State knocked off North Dakota for the first time, 35-13 in the regular season finale for both teams Saturday.

The Redbirds are 9-2 (6-2 Missouri Valley Conference) and are looking to reach the FCS playoffs for the first time since 2019 and sixth time in Brock Spack’s 16 seasons as head coach.

Illinois State opened the game with some trickery. Eddie Kasper pulled up on a fleaflicker and launched a 30-yard touchdown pass to Xavier Loyd to cap a seven-play, 70-yard opening drive.

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Simon Romfo tied it on North Dakota’s only touchdown of the day, throwing 20 yards to Nate DeMontagnac.

Wright scored from the 10 to make it 14-7 after a quarter, and after C.J. Elrichs kicked a 20-yard field goal midway through the second to make it 14-10 at intermission, Wright powered in from the 18 and Mitch Bartol caught a five-yard touchdown pass from Tommy Rittenhouse to make it 28-10 after three.

Seth Glatz added a 13-yard touchdown run to make it 35-10 before Elrichs added a 37-yard field goal to get the Fighting Hawks on the board to set the final margin.

Rittenhouse finished 21 of 33 passing for 187 yards for Illinois State. Loyd caught eight passes for 121 yards.

Romfo completed 11 of 26 passes for 135 yards and a touchdown with an interception for North Dakota (5-7, 2-6).

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Illinois State faced North Dakota for just the fourth time and third time as Missouri Valley Conference opponents. The Redbirds lost the previous three meetings.



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