Nigerian group of scammers uncovered by secret service
A
group of Nigerian scammers in collaboration with other US citizens have
been using fake unemployment claims to steal millions of dollars.
The Secret Service is investigating a vast fraud ring of suspected
Nigerian hackers who allegedly used bogus unemployment claims to steal
hundreds of millions in taxpayer dollars intended to help jobless
Americans.
The crime ring is exploiting the coronavirus pandemic and economic
crisis by flooding overwhelmed state unemployment offices with bogus
claims in the names of Americans who are still working, according to a
memo reported by Krebs on Security.
The memo, sent to Secret Service field offices on Thursday, said that 'substantial
amount of the fraudulent benefits' have used information stolen from
'first responders, government personnel and school employees.'
Washington state, said to be a magnet for bogus claims, has already
had to temporarily halt payment of benefits while it sorts through the
surge of fraud, leaving jobless Americans in dire financial straits.
State labor departments are being targeted by Nigerian scammers
stealing millions in unemployment benefits, the Secret Service warns.
State labor departments are being targeted by Nigerian scammers
stealing millions in unemployment benefits, the Secret Service warns. A
labor office in New York is seen above.
Washington's Employment Security Department suspended payments on
Thursday to sort through what it calls 'impostor theft' by sophisticated
criminals using stolen Social Security numbers and other personal data
to access the state's unemployment insurance system.
The state planned to resume benefits payments on Saturday.
It comes as state unemployment offices have been overwhelmed by
record-shattering numbers of claims, with more than 35 million people
losing their jobs amid the lockdowns intended to slow the spread of
coronavirus.
The bogus claims only make it harder for overtaxed state offices to
pay out legitimate claims, at a time when many who lost their jobs
months ago have yet to see their legitimate claims filled.
'It is assumed the fraud ring behind this possesses a
substantial [personal information] database to submit the volume of
applications observed thus far,' the Secret Service warned in the memo.
'The primary state targeted so far is Washington, although
there is also evidence of attacks in North Carolina, Massachusetts,
Rhode Island, Oklahoma, Wyoming and Florida,' the memo added.
'In the state of Washington, individuals residing out-of-state
are receiving multiple ACH deposits from the State of Washington
Unemployment Benefits Program, all in different individuals' names with
no connection to the account holder,' the notice continues.
The U.S. Attorney's office in Seattle said on Friday that it is
working with state authorities to track down and prosecute criminals who
are stealing unemployment benefits.
'Chasing these reprehensible criminals is just one part of the equation,' U.S. Attorney Brian Moran said in a statement.
'The other part is for the state to address and fix the
vulnerabilities in their system, and I am advised that they are working
to address that part of the problem.'
The Secret Service memo suggests that the suspected Nigerian
scammers utilize American 'mules' -- often victims of online romance
scams -- to receive direct deposits from the fraudulent transactions and
forward the money to the overseas scammers.
The Secret Service was historically part of the Treasury
Department, and in addition to protecting the president it is tasked
with safeguarding the nation's financial and payment systems.
Bankers in Oklahoma say that they have seen a surge in unemployment
claims from Washington sent to suspected mules in their state.
'It's been unbelievable to see the huge number of bogus filings
here, and in such large amounts,' Elaine Dodd, executive vice president
of the fraud division at the Oklahoma Bankers Association, told Krebs.
'I'm proud of our bankers because they've managed to stop a lot
of these transfers, but some are already gone. Most mules seem to have
[been involved in] romance scams.'
On Thursday, the federal government reported that nearly three
million people filed unemployment claims last week, bringing the total
over the last two months to more than 36 million.
The Treasury Department says unemployment programs delivered $48 billion in payments in April alone.
Source: DailyMail
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