From the NYT:
With states scrambling to pay out unemployment claims to tens of millions of Americans, a vast attack flooding unemployment agencies with fraudulent claims appears to have already siphoned millions of dollars in payments.
Investigators from the Secret Service said that they had information implicating a well-organized Nigerian fraud ring and that stolen information like social security numbers had allowed the network to file claims on behalf of people who in many cases had not lost their jobs.
Most of the fraudulent claims have so far been concentrated in Washington State, but evidence also pointed to similar attacks in Florida, Massachusetts, North Carolina, Oklahoma, Rhode Island and Wyoming.
The challenge of pre-empting fraudulent claims has increased as the pressure to get money into the hands of unemployed workers has grown. Unemployment offices accustomed to dealing with jobless claims in the thousands have been inundated with over a million claims during recent months in more populous states.
The attacks, which the Secret Service warned could conceivably target every state, could result in “potential losses in the hundreds of millions of dollars,” according to a memo obtained by The New York Times.
The discovery has added to concerns that jury-rigged efforts to rapidly dispense economic relief could be easily exploited by fraudsters. The I.R.S. last month documented losses of at least $16.9 billion because of identity theft as it raced to dole out trillions of dollars in economic stimulus checks.
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Topic: BIG fraud (Read 1161 times)