San Antonio Express-News (Sunday)
Five ways to help protect yourself from unemployment insurance fraud
Many people around the U.S. are relying on unemployment insurance assistance as the country battles the pandemic and associated economic effects. As unemployment has risen, fraudsters have been targeting consumers to steal unemployment insurance benefits. They do this by taking personally identifiable information (PII) that cybercriminals have posted on the darkweb, stolen fromunsuspecting consumers or gained from past data breaches.
Once fraudsters have this information, which can include a victim’s name, address, Social Security number and driver license number, they falsely apply to a state’s unemployment insurance programto register for unemployment insurance benefits. These benefits are typically distributed via direct deposit or prepaid debit cards for those without bank accounts. Once a fraudster has access to the stolen funds, they can use a prepaid payment account service and its mobile app to cash out ormake purchases - in-store or online - for items like giftcards, electronics, cryptocurrency, money orders, andmoney transfers.
“Fraudsters are actively targeting state unemployment insurance programs hoping to find gaps. This problem requires a collective effort with everyone doing their part, including the state workforce agencies, law enforcement, financial institutions, payment processors and payment networks.
Consumersmust be on-guard for suspicious activities so fraudsters cannot exploit their identity for financial gain,” saidMichael Lemberger, senior vice president and regional risk officer for North America at Visa.
The warning signs for these crimes can be tough to spot, but here are common red flags to look out for:
1) Offers frompeople or organizations you don’t recognize promising early and faster unemployment insurance benefit payments.
2) Solicitations frompeople you don’t know offering money in exchange for your personal information.
3) Letters or email correspondence indicating new accounts or unemployment insurance benefits have been initiated in your name.
To avoid your personal information from being used for fraud, Visa recommends the following to protect yourself:
• Proactively register for an unemployment insurance account directly through your state’s website. This way, if anyone tries to steal your information, state authorities will notify you as soon as possible and prevent your money fromgetting stolen.
• Secure your personal information - online and offline. Use online tools to encrypt and lock down sensitive digital information, such as your financial and health documents. For physical documents with your personal and financial information, make sure they’re locked in a secure spot and safely shred any documents you don’t need.
• Bemindful of social media and email scams. If it seems too good to be true, it probably is. Fraudsterswill try to convince you that you can get your benefits sooner, youmay be eligible formore benefits, or a person you don’t knowneeds helpwith their unemployment insurance payments.
• Just like our physical hygiene is crucial right now, so is our cyber hygiene. Don’t click on links or attachments fromemail addresses and people you don’t recognize or offers you didn’t ask for.
• And, last but not least, your information is valuable so keep your personal information to yourself. Never share your personal information unless there is a legitimate reason to do so.
– Brandpoint