Open 24/7/365

We Have A Life-Time Warranty /
Guarantee On All Products. (Includes Parts And Labor)

Financial Systems Set Up To Monitor Unemployment Insurance Fraud Are Being Overloaded (#GotBlockchain?)

As U.S. jobless claims swell during the pandemic, authorities are urging financial institutions to watch for schemes involving unemployment insurance payments. Financial Systems Set Up To Monitor Unemployment Insurance Fraud Are Being Overloaded (#GotBlockchain?)

U.S. unemployment claims, which have surged during the coronavirus pandemic, are amplifying a compliance risk for financial institutions: unemployment insurance fraud.

The Treasury Department’s Financial Crimes Enforcement Network issued an advisory Tuesday, alerting banks to red flags that could indicate illicit activity, including emerging schemes exploiting vulnerabilities created by the pandemic. In particular, U.S. authorities and financial institutions have spotted instances of fraud related to unemployment payments, according to FinCEN.

Unemployment insurance is a prime target for fraudsters, given the high volume of people who have lost their jobs due to the pandemic, according to Raymond Dookhie, a managing director at compliance advisory firm K2 Intelligence LLC.

“The financial systems that are set up to monitor fraud in this current environment are being overloaded,” he said.

Smaller financial institutions, which often have less sophisticated monitoring systems or fewer resources to investigate suspicious activity, are particularly vulnerable, Mr. Dookhie said.

Pandemic-related unemployment fraud could include the use of fake or stolen identities, misrepresentation of income, false claims of having worked for a legitimate company or, in some cases, for a fictitious one, using falsified employee and wage records, FinCEN said.

Schemes also could involve collusion between employers and employees, in which a worker receives unemployment payments as the employer continues to pay the person a reduced wage under the table, according to FinCEN.

The Treasury’s financial crime unit encouraged financial institutions to conduct additional investigations when appropriate and highlighted possible indicators of illicit activity, such as customers who receive unemployment insurance payments from a state other than the one where the customer claims to reside or have previously worked.

Other indicators of fraud could include unemployment insurance payments from multiple states within the same disbursement time frame and payments that are quickly sent via wire transfer to foreign accounts, particularly in countries with weak anti-money-laundering controls, FinCEN said.

FinCEN also warned of customers who send unemployment insurance payments to a peer-to-peer application or app, then wire the funds to overseas accounts or deposit checks in accounts held by a suspected front company.

Financial institutions are required to file reports that identify suspicious transactions. Such suspicious activity reports, or SARs, are intended to help federal authorities disrupt the flow of money to terrorists, drug traffickers, arms proliferators and other bad actors.

“Financial institutions are effectively at the front lines against the fight against fraud,” Mr. Dookhie said, adding that the guidance would help banks update monitoring systems as fraudsters’ methods evolve.

“For any surveillance program to be effective, it needs to be periodically updated to reflect the current environment,” he said. “Given the pandemic, it’s important for those financial institutions to consider all of the types of fraud schemes that can occur.”

Financial Systems Set Up,Financial Systems Set Up,


Related Articles:

A Millionaire Hacker’s Lessons For Corporate America

Container Shipping Line CMA CGM Says Data Possibly Stolen In Cyberattack

Major Hospital System Hit With Cyberattack, Potentially Largest In U.S. History

Hacker Releases Information On Las Vegas-Area Students After Officials Don’t Pay Ransom

Russian Troll Farms Posing As African-American Support For Donald Trump

US Moves To Seize Cryptocurrency Accounts Linked To North Korean Heists

These Illicit SIM Cards Are Making Hacks Like Twitter’s Easier

Uber Exec Allegedly Concealed 2016 Hack With $100K BTC ‘Bug Bounty’ Pay-Off

Senate Panel’s Russia Probe Found Counterintelligence Risks In Trump’s 2016 Campaign

Bockchain Based Surveillance Camera Technology Detects Crime In Real-Time

Trump Bans TicToc For Violating Your Privacy Rights While Giving US-Based Firm Go Ahead (#GotBitcoin?)

Facebook Offers Money To Reel In TikTok Creators

How A Facebook Employee Helped Trump Win—But Switched Sides For 2020

Facebook Rebuffs Barr, Moves Ahead on Messaging Encryption

Facebook Ad Rates Fall As Coronavirus Undermines Ad Spending

Facebook Labels Trump Posts On Grounds That He’s Inciting Violence

Crypto Prediction Markets Face Competition From Facebook ‘Forecasts’ (#GotBitcoin?)

Coronavirus Is The Pin That Burst Facebook And Google Online Ads Business Bubble

OpenLibra Plans To Launch Permissionless Fork Of Facebook’s Stablecoin (#GotBitcoin?)

Facebook Warns Investors That Libra Stablecoin May Never Launch (#GotBitcoin?)

FTC Approves Roughly $5 Billion Facebook Settlement (#GotBitcoin?)

How Facebook Coin’s Big Corporate Backers Will Profit From Crypto

Facebook’s Libra Is Bad For African Americans (#GotBitcoin?)

A Monumental Fight Over Facebook’s Cryptocurrency Is Coming (#GotBitcoin?)

Alert! 540 Million Facebook Users’ Data Exposed On Amazon Servers (#GotBitcoin?)

Facebook Bug Potentially Exposed Unshared Photos of Up 6.8 Million Users (#GotBitcoin?)

Facebook Says Millions of Users’ Passwords Were Improperly Stored in Internal Systems (#GotBitcoin?)

Advertisers Allege Facebook Failed to Disclose Key Metric Error For More Than A Year (#GotBitcoin?)

Ad Agency CEO Calls On Marketers To Take Collective Stand Against Facebook (#GotBitcoin?)

Thieves Can Now Nab Your Data In A Few Minutes For A Few Bucks (#GotBitcoin?)

New Crypto Mining Malware Beapy Uses Leaked NSA Hacking Tools: Symantec Research (#GotBitcoin?)

Equifax, FICO Team Up To Sell Your Financial Data To Banks (#GotBitcoin?)

Cyber-Security Alert!: FEMA Leaked Data Of 2.3 Million Disaster Survivors (#GotBitcoin?)

DMV Hacked! Your Personal Records Are Now Being Transmitted To Croatia (#GotBitcoin?)

Lithuanian Man Pleads Guilty In $100 Million Fraud Against Google, Facebook (#GotBitcoin?)

Hack Alert! Buca Di Beppo, Owned By Earl Enterprises Suffers Data Breach Of 2M Cards (#GotBitcoin?)

SEC Hack Proves Bitcoin Has Better Data Security (#GotBitcoin?)

Maxine Waters (D., Calif.) Rises As Banking Industry’s Overseer (#GotBitcoin?)

FICO Plans Big Shift In Credit-Score Calculations, Potentially Boosting Millions of Borrowers (#GotBitcoin?)

Our Facebook Page

Your Questions And Comments Are Greatly Appreciated.

Monty H. & Carolyn A.

Go back

Leave a Reply