Scammers cash in as jobless claims surge

As if losing your job or a string of paychecks during a coronavirus- related furlough isn't stressful enough, now those who file for unemployment benefits are being warned to watch out for professional crime rings. And the crooks could create headaches for you, too, even if you're lucky enough to still be working or perhaps even retired. Add this to a long list of COVID- 19 headaches. Across the country, consumers are being warned that fraud is on the rise relating to jobless claims. The U. S. Secret Service has already spotted trouble in Florida, Washington, North Carolina, Massachusetts, Rhode Island, Oklahoma and Wyoming. "It is extremely likely every state is vulnerable to this scheme and will be targeted if they have not been already," according to the Secret Service alert issued May 14. The alert noted that a significant amount of fraudulent claims have used stolen ID information from school employees, first responders, as well as government employees. It is assumed, according to federal authorities, that the ring has a massive database to "submit the volume of applications observed thus far."

“It is extremely likely every state is vulnerable to this scheme and will be targeted if they have not been already.”

Secret Service alert

Some data being used might belong to anyone, whether they're jobless or not. Retirees, for example, report receiving unemployment forms to verify their identity from the state when they didn't try to make any claims recently. The online con artists claim to be gig workers or self- employed workers in some cases to steal money from the unemployment system. Unemployment benefits have become particularly lucrative for thieves during the coronavirus crisis. An extra $ 600 in benefits may be added on top of state jobless benefits for those who lose work because of the COVID- 19 crisis under the new federal Pandemic Unemployment Assistance program. "A Nigerian crime ring is the prime suspect, but doubtless there are others," said Adam Levin, founder of CyberScout, which offers identity theft protection and data security. "They have motive: financial gain. They have the means: They are experts at phishing attacks and have an international network of money mules who have been laundering money for them for years. "And Levin suspects that many unsuspecting folks who are desperate for additional work at this moment could be caught in parts of this scheme, too. On top of that, he noted, jobless call centers in various states, including Michigan, are overwhelmed. Some websites have crashed at various points because of waves of people trying to file claims, get more information or sort out suspicious transactions. "This scam targets employed and unemployed Americans alike," Levin said. The losses from these claims are estimated to be in the several hundred million dollar range, according to an alert issued by the Secret Service. The crimes are fueled by data lost in leaks, breaches, phishing attacks and even oversharing on social media. As emails popped up in the past few days, some wondered whether they were looking at another potential scam. Why would the Michigan Department of Labor and Economic Opportunity be contacting you about "an international criminal ring exploiting the COVID- 19 crisis"? Really? It just sounds so strange. But it's legitimate. Some who filed unemployment claims in Michigan began receiving emails May 27 to alert them that more ID verification would be needed, thanks to fears of an online crime spree. Some received letters in the mail prior to the emails being sent. When you go to the Michigan jobless claims site to apply for benefits, you're also now alerted that you might be spotting a “Stop Payment” notice on your account. “There is a rise in unlawful unemployment claims across the nation,” said Steve Gray, the director of the Michigan Unemployment Insurance Agency, in a statement. “And unfortunately, criminals are taking advantage of this global pandemic.” The crooks already have plenty of stolen personal information, including Social Security numbers, after several major hacking incidents during the past few years. “Due to largescale fraud attempts against state unemployment programs across the nation,” the Michigan site says, “the UIA has developed additional measures to protect certain claimants by requiring further identity verification and claim eligibility authentication.” The Michigan Unemployment Insurance Agency is warning residents of the possibility that criminals will file impostor claims. “No personal data from claimants has been stolen from UIA,” according to the Michigan agency. Many of those who have filed unemployment claims have begun receiving emails from the State of Michigan to require them to verify their identities. People who are filing new claims, as well as those with existing claims, could face this new verification requirement in Michigan, too. Some people who have already filed claims may have received “Stop Payment” notices on their accounts and now must review instructions that they were sent for how to submit additional information. “If you received a ‘ Stop Payment' notice on your account, detailed instructions have been emailed and mailed to you on how to submit additional identifying information in order to receive your benefits," the site says. "There is no reason to take further action until you receive the instructions.” Some banks or credit unions also may place a hold on a customer's account if the financial institution suspects fraud. Customers need to work directly with the bank if that's the case. The Michigan unemployment agency is working with law enforcement to determine the level of fraud there. The state will temporarily suspend certain payments to prevent fraud when it suspects malicious claims.