Secret Service Warns Unemployment Checks Will be Targeted by Scammers; Would DLT Help?

Even during some of the bleakest times, scammers find opportunity in chaos.

The coronavirus pandemic has not just caused a global health scare, but it has also impacted the livelihoods of billions around the globe due to mandatory shutdowns to contain the spread of the virus.

Many governments have decided to help the citizens in these troubled times by offering stimulus checks and cash relief including countries in and of Europe, Canada and the United States.

The United States has been the worst hit given the number of cases have reached over 1.5 million and thousands have perished to the disease. The outbreak of pandemic also saw one of the worst unemployment crisis in U.S. history as millions registered as unemployed in hopes of getting a stimulus check, and the unemployment rate peaked at 14.7%.

While the federal government has decided to help the unemployed in the ongoing pandemic, the unemployment checks meant to help the needy are now being targeted by scammers.

The U.S. Secret Service has alleged that they have evidence of sophisticated scamming machinery targeting these welfare checks which can steal hundreds of millions of dollars.

A New York Times report suggested that these scammers were filing false benefit claims disguised as people who were not unemployed and they might be using personal information gathered from earlier cyber attacks. The memo read,

“It is assumed the fraud ring behind this possesses a substantial P.I.I. Database to submit the volume of applications observed thus far.”

Nigerian Scammers Could be Behind the Sophisticated Attacks

A secret service memo suggested that the way these attacks are being carried out and the sophistication of these scams are quite similar to the organized scams carried out by Nigerian scammer groups.

These scammers held detailed information about U.S. citizens, including their social security numbers. Agencies since tasked with aiding unemployment checks realized the grave problem quickly.

Washington state has emerged as the primary target, while there have been reported cases of such scams in Florida, Massachusetts, North Carolina, Oklahoma, Rhode Island and Wyoming as well.

Back in April, the cybersecurity officials have warned about the increase in cybercrimes amid lockdown and how these cybercriminals have changed the tactics and sophistication level to pray on the insecurities of people looking for jobs.

Amid growing cyber crimes and misuse of data, many have suggested the use of blockchain to tackle the authenticity of the data since the technology is immutable and not controlled through a centralized system.

With the correct implementation of blockchain, government agencies can track the relief funds and ensure that these funds reach the right people.

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

Avatar
James W
James is a cryptocurrency enthusiast, an advocate for the development and exposure of blockchain technology, and believes in the use of digital assets for the good of the society. Enthralled by the huge potential of cryptocurrencies and their underlying technology – blockchain – James dedicated himself to learn more about the industry, becoming a highly sought-after writer in the sector. He covers news, white papers and any content related to cryptocurrency and blockchain in general.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

LEAVE A REPLY

Please enter your comment!
Please enter your name here

3,468FansLike
2,795FollowersFollow
4,235FollowersFollow

Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

YFI’s Andre Cronje isn’t Going Anywhere; ‘This Space Won't Get Rid of Me'

Andre Cronje, the guy behind yEarn and the popular YFI, is not leaving the cryptocurrency space any time soon, at least, “until there is...

Crypto Mom, Hester Peirce, Secures Second Term as SEC Commissioner Through 2025

The US Securities and Exchange (SEC) Commissioner Hester Peirce, aka “Crypto Mom,” has been confirmed for a second term that will last till June...

yEarn Expanding its Ecosystem to Bring in Hot DeFi Tokens into the Mix

DeFi craze continues to get hotter as the system grows. yEarn’s zero supply valueless token YFI climbed to a new high today at $5,300 and...

Bitcoin Dollar Cost Averaging From 2017 Market Peak Still Returned 61.8%

Bitcoin price remains strong, not far from hitting $12,000 yet again after the touch and go over the weekend. Interestingly, despite the fact that the...

DEX Leader Raises $11 Million in Series A Funding for Uniswap V3 Following an Explosive Month

A popular and widely used decentralized exchange (DEX) Uniswap has raised $11 million in Series A funding led by Andreessen Horowitz with additional investment...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today