US Authorities Investigate Cyber Attack After Hackers Steal Millions of Dollars in Unemployment Benefits

Federal authorities reported that millions of dollars in unemployment benefits had been stolen from US systems by a group of international hackers. The massive attack created a network that took funds that were meant for the jobless.

The system was breached by the use of detailed personal information that the criminals obtained previously. The assault occurred just as that nation has received a staggering number of unemployment claims due to the recent coronavirus pandemic.

Similar attacks

According to Fox13, the confidential information of more than 30,000 people who have applied for the Pandemic Unemployment Assistance has been the target of cyberattacks, including security numbers and bank account and routing numbers.

The attack was noticed by a computer programmer who was also applying for the program when he saw that some information was being exposed.

The Arkansas Division of Workforce Services (ADWS) was reportedly notified of the attack on the morning of Friday and has led to the website shutting down later that day.

Asa Hutchinson, the governor of Arkansas, addressed the incident during a press conference. The governor said, "It was necessary to shut the system down. These steps have been taken consistent with our state requirements for any potential data breach."

A formal investigation has been started, according to Governor Hutchinson and that applicants who may have had their information leaked will be notified. A credit monitoring program will be used if deemed necessary.

The official also said, "Our protocols is that Law enforcement is notified of the breach. We obviously notify our cyber insurance carrier. Forensics are currently being conducted by an outside IT expert that we want to make sure that the system is in good shape before it goes back online."

The unemployment assistance page is back online, according to reports, and Governor Hutchinson stated more than 100 people are taking time to work and make sure payments are appropriately distributed.

A statement by the ADWS read: "Yesterday, we learned of a system vulnerability impacting the division of workforce services' pandemic unemployment assistance application system and have disconnected outside access to the pua network. ADWS is committed to completing a full forensic review and will take all appropriate action in response to our findings."

Also Read: $3 Trillion COVID Relief Bill Raises Question, "How is the US Economy Faring Amid the Pandemic?"

Is the money safe?

The New York Times reports that with how many states across the nation are trying to pay the surge of claims, the payments have gone to direct-deposit accounts. In the state of Washington, officials realized the extent of the issue due to inquiries of employed people asking why they received confirmation emails.

Authorities are looking into the possibility that the breach was plotted by a Nigerian fraud ring and is using mules inside the US to extend its reach and make its attacks more formidable.

Washington State is being considered as the primary target of the attacks, although several other states have also had their systems breached.

Several employed citizens have become the target of fraudulent claims. One Anna Zivarts, who works at Disability Rights Washington, filed a complaint. Zivarts said she received a series of official online documents on May 8 and thought she might have owed tax money.

Upon opening and reading the contents of the emails, her worries changed for the worse. She said "I called my boss and said, 'Am I getting laid off and I just don't know about it?" but was reassured that was keeping her job.

Brian T. Moran, a US attorney from Seattle, said his office was tracking down the perpetrators of the false claims and advised the state to "address and fix vulnerabilities in their system."

The commissioner of Washington State's Employment Security Department, Suzy LeVine, said that the losses experienced by the state were in the millions. Coordination with law enforcement agencies is being conducted to try and take back the stolen funds.