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Feds Suspect Vast Fraud Network Is Targeting U.S. Unemployment Systems Feds Suspect Vast Fraud Network Is Targeting U.S. Unemployment Systems
(8 days later)
SEATTLE — A group of international fraudsters appears to have mounted an immense, sophisticated attack on U.S. unemployment systems, creating a network that has already siphoned millions of dollars in payments that were intended to avert an economic collapse, according to federal authorities.SEATTLE — A group of international fraudsters appears to have mounted an immense, sophisticated attack on U.S. unemployment systems, creating a network that has already siphoned millions of dollars in payments that were intended to avert an economic collapse, according to federal authorities.
The attackers have used detailed information about U.S. citizens, such as social security numbers that may have been obtained from cyber hacks of years past, to file claims on behalf of people who have not been laid off, officials said. The attack has exploited state unemployment systems at a time when they are straining to process a crush of claims from an employment crisis unmatched since the Great Depression.The attackers have used detailed information about U.S. citizens, such as social security numbers that may have been obtained from cyber hacks of years past, to file claims on behalf of people who have not been laid off, officials said. The attack has exploited state unemployment systems at a time when they are straining to process a crush of claims from an employment crisis unmatched since the Great Depression.
With many states rushing to pay claims, payments have gone straight to direct-deposit accounts. In Washington State, the agency tasked with managing unemployment claims there began realizing the extent of the problem in recent days when still-employed people called to question why they had received confirmation paperwork in the mail.With many states rushing to pay claims, payments have gone straight to direct-deposit accounts. In Washington State, the agency tasked with managing unemployment claims there began realizing the extent of the problem in recent days when still-employed people called to question why they had received confirmation paperwork in the mail.
“This is a gut punch,” said Suzi LeVine, the commissioner of Washington State’s Employment Security Department.“This is a gut punch,” said Suzi LeVine, the commissioner of Washington State’s Employment Security Department.
In a memo obtained by The New York Times, investigators from the U.S. Secret Service said they had information suggesting that the scheme was coming from a well-organized Nigerian fraud ring and could result in “potential losses in the hundreds of millions of dollars.” Roy Dotson, a special agent who specializes in financial fraud at the Secret Service, said in an interview investigators were still working to pinpoint who was involved and exactly where they were.In a memo obtained by The New York Times, investigators from the U.S. Secret Service said they had information suggesting that the scheme was coming from a well-organized Nigerian fraud ring and could result in “potential losses in the hundreds of millions of dollars.” Roy Dotson, a special agent who specializes in financial fraud at the Secret Service, said in an interview investigators were still working to pinpoint who was involved and exactly where they were.
”We are actively running down every lead we are getting,” Mr. Dotson said.”We are actively running down every lead we are getting,” Mr. Dotson said.
Mr. Dotson said it appeared the fraud was being aided by a substantial number of “mules” — people, often in the United States, who were used as intermediaries for money laundering after making connections with fraudsters online. He warned people to be wary of quick-money job offers or other suspicious financial arrangements.Mr. Dotson said it appeared the fraud was being aided by a substantial number of “mules” — people, often in the United States, who were used as intermediaries for money laundering after making connections with fraudsters online. He warned people to be wary of quick-money job offers or other suspicious financial arrangements.
The Secret Service memo said Washington State had emerged as the primary target thus far, but there was also evidence of attacks in Florida, Massachusetts, North Carolina, Oklahoma, Rhode Island and Wyoming. The agency warned that every state was vulnerable and could be targeted, noting that the attackers appeared to have extensive records of personally identifiable information, or P.I.I.The Secret Service memo said Washington State had emerged as the primary target thus far, but there was also evidence of attacks in Florida, Massachusetts, North Carolina, Oklahoma, Rhode Island and Wyoming. The agency warned that every state was vulnerable and could be targeted, noting that the attackers appeared to have extensive records of personally identifiable information, or P.I.I.
“It is assumed the fraud ring behind this possess a substantial P.I.I. database to submit the volume of applications observed thus far,” the memo said.“It is assumed the fraud ring behind this possess a substantial P.I.I. database to submit the volume of applications observed thus far,” the memo said.
Rhode Island State Police reported on Monday that it had received “numerous reports of suspected fraud” related to unemployment benefits.Rhode Island State Police reported on Monday that it had received “numerous reports of suspected fraud” related to unemployment benefits.
Scott Jensen, the director of Rhode Island Department of Labor and Training, said Saturday that it could be hard to distinguish between a legitimate claim and a fraudulent one when impostors provided the proper information. He said the fraudulent cases that were emerging seemed to have their paperwork in order without the hallmarks of other times when claims might have mistakes or other indicators that they were not genuine.Scott Jensen, the director of Rhode Island Department of Labor and Training, said Saturday that it could be hard to distinguish between a legitimate claim and a fraudulent one when impostors provided the proper information. He said the fraudulent cases that were emerging seemed to have their paperwork in order without the hallmarks of other times when claims might have mistakes or other indicators that they were not genuine.
“Whoever it is seems to be fairly sophisticated and good at what they are doing,” Mr. Jensen said. He did not know whether it was a group of international actors but was hopeful investigators would get to the bottom of the fraud. In the meantime, he said, the state is clamping down and taking a closer look at claims surrounding specific banks.“Whoever it is seems to be fairly sophisticated and good at what they are doing,” Mr. Jensen said. He did not know whether it was a group of international actors but was hopeful investigators would get to the bottom of the fraud. In the meantime, he said, the state is clamping down and taking a closer look at claims surrounding specific banks.
Ms. LeVine said she did not want to put a number on the losses so far in Washington State but believed it was in the millions of dollars. The state is working with law enforcement agencies to try and reclaim some of the funds.Ms. LeVine said she did not want to put a number on the losses so far in Washington State but believed it was in the millions of dollars. The state is working with law enforcement agencies to try and reclaim some of the funds.
Some workplaces have been hit particularly hard. At Western Washington University in Bellingham, Wash., more than 400 out of about 2,500 total employees have been targeted with fraudulent claims, Paul Cocke, the university’s spokesman, said.Some workplaces have been hit particularly hard. At Western Washington University in Bellingham, Wash., more than 400 out of about 2,500 total employees have been targeted with fraudulent claims, Paul Cocke, the university’s spokesman, said.
The state has been inundated with calls from people and businesses asking about unemployment notifications that have been sent to them. They have flooded a hotline and have forced the state to hire more people to answer the phones.The state has been inundated with calls from people and businesses asking about unemployment notifications that have been sent to them. They have flooded a hotline and have forced the state to hire more people to answer the phones.
One of those who filed a complaint, Anna Zivarts, a Seattle resident who works at the nonprofit Disability Rights Washington, said she found a series of official envelopes from the government in her mail on May 8. At first, she worried that she might owe taxes. Then, when she opened the mail, she had another worry.One of those who filed a complaint, Anna Zivarts, a Seattle resident who works at the nonprofit Disability Rights Washington, said she found a series of official envelopes from the government in her mail on May 8. At first, she worried that she might owe taxes. Then, when she opened the mail, she had another worry.
“I called my boss and said, ‘Am I getting laid off and I just don’t know about it?’” Ms. Zivarts said. But her boss assured her that she was still employed.“I called my boss and said, ‘Am I getting laid off and I just don’t know about it?’” Ms. Zivarts said. But her boss assured her that she was still employed.
Updated June 24, 2020 Updated June 30, 2020
Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days.
Scientists around the country have tried to identify everyday materials that do a good job of filtering microscopic particles. In recent tests, HEPA furnace filters scored high, as did vacuum cleaner bags, fabric similar to flannel pajamas and those of 600-count pillowcases. Other materials tested included layered coffee filters and scarves and bandannas. These scored lower, but still captured a small percentage of particles.Scientists around the country have tried to identify everyday materials that do a good job of filtering microscopic particles. In recent tests, HEPA furnace filters scored high, as did vacuum cleaner bags, fabric similar to flannel pajamas and those of 600-count pillowcases. Other materials tested included layered coffee filters and scarves and bandannas. These scored lower, but still captured a small percentage of particles.
A commentary published this month on the website of the British Journal of Sports Medicine points out that covering your face during exercise “comes with issues of potential breathing restriction and discomfort” and requires “balancing benefits versus possible adverse events.” Masks do alter exercise, says Cedric X. Bryant, the president and chief science officer of the American Council on Exercise, a nonprofit organization that funds exercise research and certifies fitness professionals. “In my personal experience,” he says, “heart rates are higher at the same relative intensity when you wear a mask.” Some people also could experience lightheadedness during familiar workouts while masked, says Len Kravitz, a professor of exercise science at the University of New Mexico.A commentary published this month on the website of the British Journal of Sports Medicine points out that covering your face during exercise “comes with issues of potential breathing restriction and discomfort” and requires “balancing benefits versus possible adverse events.” Masks do alter exercise, says Cedric X. Bryant, the president and chief science officer of the American Council on Exercise, a nonprofit organization that funds exercise research and certifies fitness professionals. “In my personal experience,” he says, “heart rates are higher at the same relative intensity when you wear a mask.” Some people also could experience lightheadedness during familiar workouts while masked, says Len Kravitz, a professor of exercise science at the University of New Mexico.
The steroid, dexamethasone, is the first treatment shown to reduce mortality in severely ill patients, according to scientists in Britain. The drug appears to reduce inflammation caused by the immune system, protecting the tissues. In the study, dexamethasone reduced deaths of patients on ventilators by one-third, and deaths of patients on oxygen by one-fifth.The steroid, dexamethasone, is the first treatment shown to reduce mortality in severely ill patients, according to scientists in Britain. The drug appears to reduce inflammation caused by the immune system, protecting the tissues. In the study, dexamethasone reduced deaths of patients on ventilators by one-third, and deaths of patients on oxygen by one-fifth.
The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave.The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave.
So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement.So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement.
Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks.Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks.
A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study.A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study.
The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April.The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April.
Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days.
If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.)If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.)
If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others.If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others.
Ms. Zivarts said she called and emailed to flag the issue for the state but did not hear back. Her employer has also notified the state.Ms. Zivarts said she called and emailed to flag the issue for the state but did not hear back. Her employer has also notified the state.
More than one million people in Washington State have filed unemployment claims amid the economic turmoil brought by the coronavirus pandemic. Around the country, the numbers have reached more than 36 million in the past two months.More than one million people in Washington State have filed unemployment claims amid the economic turmoil brought by the coronavirus pandemic. Around the country, the numbers have reached more than 36 million in the past two months.
Unemployment programs have delivered billions of dollars in payments.Unemployment programs have delivered billions of dollars in payments.
States may be particularly vulnerable as they work to rush payments to people who have lost their jobs. Many states have long built in lengthy reviews to help weed out fraudulent claims, but as more people have suddenly become eligible and the need for speedy payments becomes urgent, some states have tried to eliminate those delays.States may be particularly vulnerable as they work to rush payments to people who have lost their jobs. Many states have long built in lengthy reviews to help weed out fraudulent claims, but as more people have suddenly become eligible and the need for speedy payments becomes urgent, some states have tried to eliminate those delays.
As with many other states, Washington’s typical weeklong waiting period before unemployment payments are paid has been reduced. Federal funding has expanded unemployment benefits to workers who were not previously qualified.As with many other states, Washington’s typical weeklong waiting period before unemployment payments are paid has been reduced. Federal funding has expanded unemployment benefits to workers who were not previously qualified.
“There’s a dire need to get money out quickly,” Ms. LeVine said. “This makes us an attractive target for fraudsters.”“There’s a dire need to get money out quickly,” Ms. LeVine said. “This makes us an attractive target for fraudsters.”
People who need jobless benefits have reported delays and challenges in getting their applications approved. Ms. LeVine said the state was working to resolve delayed claims while trying to strike a balance between scrutiny and streamlining.People who need jobless benefits have reported delays and challenges in getting their applications approved. Ms. LeVine said the state was working to resolve delayed claims while trying to strike a balance between scrutiny and streamlining.
Washington State has some of the highest weekly benefit amounts. Federal law has provided an additional $600 a week for the next few months. Unemployed workers can also get retroactive payments.Washington State has some of the highest weekly benefit amounts. Federal law has provided an additional $600 a week for the next few months. Unemployed workers can also get retroactive payments.
U.S. Attorney Brian T. Moran in Seattle said his office was working with other agencies to track down and prosecute the people submitting false claims. But he also said the state needed to “address and fix vulnerabilities in their system.”U.S. Attorney Brian T. Moran in Seattle said his office was working with other agencies to track down and prosecute the people submitting false claims. But he also said the state needed to “address and fix vulnerabilities in their system.”
Ms. LeVine said the unemployment agency was monitoring trends and using them to try and identify suspicious cases before payments were issued. The state has also implemented a two-day delay in payments to give workers more time to vet the claims.Ms. LeVine said the unemployment agency was monitoring trends and using them to try and identify suspicious cases before payments were issued. The state has also implemented a two-day delay in payments to give workers more time to vet the claims.