A group of hackers stole millions of Americans' identities and used them to conduct a massive unemployment scam.
According to a report from The Verge, a Nigerian crime ring allegedly used millions of Americans' stolen identities to fraudulently file for unemployment benefits. The situation is currently being investigated by the US Secret Service.
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It was explained by authorities that the personal information was stolen at a time when millions of Americans were applying for unemployment benefits. The large number of applications resulted in lax security measures, allowing the group of hackers to breach the unemployment systems in many states.
The New York Times reported on May 16 that a sophisticated international attack was evident, according to US investigators. The attack could siphon hundreds of millions of dollars that were intended for the unemployed.
It was reiterated that detailed sensitive information about American citizens, such as social security numbers that may have been breached years ago, was used by the group of cyber attackers.
The information obtained was used to file claims on behalf of individuals who have not been laid off. Payments have gone straight to direct-deposit accounts, while people in many states rushed to pay claims. It was later realized by an agency in Washington State that was tasked to manage unemployment claims when confirmation paperwork was reportedly received by still-employed individuals in their mail.
Hackers conducted a massive unemployment benefit scam using millions of Americans' stolen identities
According to The Verge, a memo was sent to the field offices by the US Secret Service late last week. It stated that a "substantial" database of stolen personal information--most of it coming from government personnel, school employees, and first responders of the pandemic--are being used by a Nigerian-based ring.
The evidence of other attacks in Flordia, Massachusetts, Oklahoma, North Carolina, Wyoming, and Rhode Island, clearly shows that Washington State is the main target of the hackers, as stated by the US Secret Service.
The New York Times reiterated that some workplaces at Western Washington University in Bellingham were seriously affected, with more than 400 out of 2,500 employees targeted by the group of hackers. The state was forced to hire more people since the hotline was flooded with phone calls from people and businesses asking about the unemployment notifications they have received.
The coronavirus pandemic has forced over 36 million Americans out of work. State unemployment offices are being inundated with claims, making it difficult for them to accommodate the unemployed individuals since many of the offices lack essential resources and staff to vet applications while getting payments to people in a timely manner. A 27% increase in fraudulent claims was seen by Washington's unemployment department between March and April 2020.
