Federal Authorities Find Evidence of Hackers Stealing Millions of Dollars Meant For Unemployed American
Federal authorities claim they found evidence of a 'sophisticated international attack' that targets the U.S. unemployment systems. The attack, they said, has already exploited and stolen millions of dollars meant for unemployed Americans.
According to reports, the system has seen an increase in "impostor fraud" applications where someone's personal information is used to file for benefits. The attackers allegedly used U.S. citizens social security numbers to file claims on behalf of people who have not been laid off during the crisis. Investigators suspect the information may have been obtained from cyber hacks in the previous years.
Washington's weekly maximum benefit amounts to $790 per week, with $600 more from the COVID-19 stimulus package. As many states rush to pay claims, the financial relief was sent straight to direct-deposit accounts.
The U.S. government was alerted to a possible cyber attack when still-employed people called to ask why they received confirmation of payment in their mail. The country's Secret Service revealed they are investigating a Nigerian crime ring that has stolen hundreds of millions intended to help jobless individuals.
Roy Dotson, a special agent at the Secret Service, claimed a substantial number of people living in the United States were acting as the intermediaries for the crime ring's money laundering scheme. He urged citizens to be wary of quick-money job offers.
While the state of Washington has been the primary target, other states such as Florida, North Carolina, and Oklahoma have reportedly been attacked by the fraud scheme. Rhode Island's officials also reported numerous cases of suspected fraud related to the unemployment system.
Workplaces in some states have also been inundated with calls from people and businesses who questioned why they received unemployment notifications. Over 400 of the Western Washington University in Bellingham's 2,500 employees were targeted with fraudulent claims.
In response to the attacks, Washington's Employment Security Department announced it would suspend payments on Thursday. The temporary pause would allow officials to sort through the 'impostor theft.' The state will resume payments on Saturday.
While millions of Americans are cramming for unemployment benefits in Washington state. The massive job losses and business closures have also forced over 36 million citizens to file for claims in the past two months.
The unemployment programs have already dispersed billions of dollars and will likely distribute millions more in the coming weeks. States who have been flooded with claims have tried to bypass lengthy reviews meant to weed out fraudulent claims in an effort to eliminate delays in payment.
The reviews initially required workers to submit a document of their job searches weekly. They were also asked to register with employment services in person and wait up to ten days for the first check. The coronavirus crisis has led Washington and other states to reduce the two-week waiting period.
The state of Washington has one of the highest weekly benefit amounts. Federal law has provided an additional $600 a week for the next few months. It has also expanded coverage to workers who were previously unqualified. Read the latest news here:
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