A nationwide fraudulent unemployment benefits cyber scam has been making headlines for many months now and still continues to threaten employers and countless individuals throughout the United States. Threat actors continue to exploit overwhelmed governmental agencies and are filing claims for benefits using the personal information of people who have not lost their jobs. The false claims have been estimated in the hundreds of millions of dollars of fraudulent unemployment claims being paid to threat actors. This fraud is a sharp reminder that sensitive personal information in the wrong hands can result in tremendous harm. Employers should remain vigilant and alert their workforce, promptly challenge fraudulent claims, and check cyber-security practices and policies to help protect against this and other cyber threats.
It is estimated that nearly 53 million unemployment claims were filed during the few months of the coronavirus pandemic and the threat has continued into 2021. Many state agencies, already understaffed and functioning with older technology and fraud detention protocols, were not prepared for the onslaught and have become tremendously overwhelmed. The resulting delays and chaos in processing so many unemployment claims in such a short time has set the perfect stage for threat actors to take advantage.
Under normal circumstances, when the unemployment claim is filed, the agency will send timely notice to the employer to provide the opportunity to protest the claim. Typically the employer has ten days to protest. However, during the pandemic, unemployment offices across the country have struggled to get the notices out to employers – taking months rather than days. Consequently, employers are receiving the protest notices after the time has expired to protest the claim. Most people learn they are affected when they get a notice from the state unemployment benefits office about their supposed application for benefits. By then, however, the benefits usually have been paid to an account the criminals control. Further, it is not clear given the magnitude of claims and impact on individuals whether in some instances agencies are paying even before they send the protest notice.
Continue Reading COVID-19 Unemployment Benefits Scams Continue Well Into the Pandemic