State Unemployment Programs Are the Latest Victim of Massive Fraud



AdobeStock_347251805Leveraging PII from victims in Washington, North Carolina, Massachusetts, Rhode Island, Oklahoma, Wyoming and Florida, scammers from Nigeria are filing fraudulent unemployment claims.

A recent Secret Service memo circulated to field offices highlights a new scam taking advantage of the pandemic in which massive unemployment claims are potentially costing states hundreds of millions of dollars.

According to Krebs on Security, a Nigerian crime ring is successfully submitting false unemployment insurance claims, collecting the money and laundering the proceeds through a large network of recruited individuals. Payments are directed to accounts that have no connection with the person placing the claim. The moment claim payments hit the account, a transaction is made to push the money to another account via a variety of methods including Person-to-Person (P2P) payments, cash withdrawals, or purchases of gift cards.

The Secret Service says there are literally hundreds of “mules” involved – individuals who willingly or unwittingly participate in the laundering of the claim monies.

The PII is the key to this fraud; without it, the scammers don’t have enough information to properly submit a claim. This scam demonstrates the importance of protecting your network environment from cyberattacks intent on stealing data. A single breach of employee or customer data can have a ripple effect when the data is misused to commit fraud in scams like this unemployment scam, as well as fake income tax return scams, opening of credit cards, etc.


Free Phishing Security Test

Would your users fall for convincing phishing attacks? Take the first step now and find out before the bad guys do. Plus, see how you stack up against your peers with phishing Industry Benchmarks. The Phish-prone percentage is usually higher than you expect and is great ammo to get budget.

PST ResultsHere's how it works:

  • Immediately start your test for up to 100 users (no need to talk to anyone)
  • Select from 20+ languages and customize the phishing test template based on your environment
  • Choose the landing page your users see after they click
  • Show users which red flags they missed, or a 404 page
  • Get a PDF emailed to you in 24 hours with your Phish-prone % and charts to share with management
  • See how your organization compares to others in your industry

Go Phishing Now!

PS: Don't like to click on redirected buttons? Cut & Paste this link in your browser:

https://www.knowbe4.com/phishing-security-test-offer

Topics: Phishing

Subscribe To Our Blog


Ransomware Has Gone Nuclear Webinar




Get the latest about social engineering

Subscribe to CyberheistNews