As unemployed Americans search for relief during the COVID-19 crisis, the US Secret Service has suspected a foreign fraud ring uses "hacked data" to perform identity theft and eventually steal millions of dollars allotted for unemployment benefits. 

Nigerian criminals, the Secret Service believes, could be the ones using personal information which were stolen in previous "cyber-attacks" and worries, "theft could reach about hundreds of millions of dollars." This was indicated in a report.

Essentially, the main target of the said fraud ring has been the unemployment office of Washington state. However, a Secret Service memo stated, as specified by the said newspaper, the attacks also reached North Carolina, Wyoming, Massachusetts, Florida, Oklahoma, and Rhode Island.

In addition, the Secret Service validated weekend that it has been able to identify "crooks" targeting the unemployment insurance program funds of the state. However, the agency did not provide further details about the investigation.

Use of Social Engineering

Usually, according to the agency, the thefts comprise of criminals who use identity theft so they can file fake claims for unemployment. Then, they use social engineering for the laundering of the money released for the unemployment package so that they wouldn't be traced.

In a statement, the agency explained, the main priorities of investigation of the Secret Service are to alleviate any attempt by criminals to steal the identity of their target citizens.

It is also the agency's main priority to mitigate cyber-enabled criminal acts since they are related to the pandemic.

Last month, the US Federal Trade Commission referred to over 100 identity theft reports related to COVID-19 pandemic, as well as fake claims for unemployment stimulus payments. Nevertheless, the news report indicated a much larger and well-organized fraud initiative.

Reportedly, as of this week, over 36.5 million individuals "have filed for unemployment benefits" due to job losses because of combat against the spread of COVID-19.

Meanwhile, the unemployment benefit offices of the state have been overwhelmed with millions of residents of the United States who lost their jobs during the COVID-19 crisis.

A Well-Organized Fraud Ring

US Secret Service investigators explained, through a memo which The New York Times was able to obtain that the tactic came from "a well-organized Nigerian fraud ring." More so, it could lead to probable t losses multi-million dollars.

A special agent specializing in financial fraud at the agency, Roy Dotson also explained that investigators were still in the works of pinpointing those who were involved and where exactly they were. Dotson also added, they were actively running down each lead they were receiving.

Additionally, according to the special agent, it appeared that the scheme was being supported by considerable quantities of "mules"-people, frequently in the US, who, he elaborated, were used as mediators to launder money after they connected "with fraudsters online."

Dotson warned the people as well, to be cautious of "easy-money" employment offers, or other doubtful financial offers.

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