‘Too sweet of a pie’: Cybercriminals steal $8B in Covid relief funds

“The Secret Service and Labor Department have been warning states for months that criminal networks are trying to steal billions of dollars in federal pandemic unemployment aid. But the overburdened and antiquated state systems that send out the checks have been unable to stop a lot of the fraud.

Using huge databases of stolen personal information, cybercriminals based everywhere from Nigeria to London have pocketed an estimated $8 billion meant for people forced out of work due to the coronavirus so far, the Labor Department’s inspector general told states last month. The IG predicts that $26 billion in the federal aid programs alone eventually could be lost to fraud.”

“state workforce agencies, stymied by decades-old IT systems and flooded with applications, have been ill-equipped to find and prevent the fraud, which appears to be far more extensive than the usual attempts to bilk government programs.”

https://www.politico.com/news/2020/10/12/unemployment-fraud-coronavirus-428514

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