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Cyber Risks · Krebs on Security

U.S. Secret Service: “Massive Fraud” Against State Unemployment Insurance Programs

Summary: A U.S. Secret Service alert says a well-organized Nigerian crime ring is filing fraudulent unemployment claims in multiple states using stolen Social Security numbers and other PII, with potential losses in the hundreds of millions of dollars and a substantial share of the fraudulent benefits using PII from first responders, government personnel and school employees. Washington is the primary target, with evidence of attacks in North Carolina, Massachusetts, Rhode Island, Oklahoma, Wyoming and Florida, and the ring is believed to use hundreds of mules to launder proceeds through ACH deposits.

Why it matters: The Secret Service says every state is likely vulnerable if it has not already been targeted, and a federal fraud investigator said some states process a claim with only a name, Social Security number and basic information - so the control gap is in the claims pipeline itself, not at the bank.

Read the original at Krebs on Security ↗

Topics
Data Breaches
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