Scam Warning: Unemployment Claim FraudFraud In law, fraud is intentional deception to secure unfair or unlawful gain (money or other assets), or to deprive a victim of a legal right. Fraud can violate civil law (e.g., a fraud victim may sue the fraud perpetrator to avoid the fraud or recover monetary compensation) or criminal law (e.g., a fraud perpetrator may be prosecuted and imprisoned by governmental authorities), or it may cause no loss of money, property, or legal right but still be an element of another civil or criminal wrong. The purpose of fraud may be monetary gain or other benefits, for example by obtaining a passport, travel document, or driver's license, or mortgage fraud, where the perpetrator may attempt to qualify for a mortgage by way of false statements. A fraud can also be a hoax, which is a distinct concept that involves deliberate deception without the intention of gain or of materially damaging or depriving a victim.
A Guest Post by Shannon Slaughter, Banking Industry Anti-Fraud Professional
Shannon is a SCARS Advisory Board Member
I’ve had several folks reach out to me lately for advice on steps to take after they were notified of fraudulent unemployment claims.
The information on your state website likely has a checklist that advises notifying your financial institution(s) and the credit bureaus.
There is one very important thing missing from this list though: YOUR WIRELESS CARRIER.
Because fraudsters with all your personal identifying information (PII) who know what they are doing can convince your wireless company they are you and switch service to a phone in their possession.
If they’ve figured out where you bank and are good enough to social engineer their way into an online banking password reset (remember they already have your PII), they can then use that phone to verify the code your financial institution sends to you, and BOOM! They control your accounts!
Now they have access to your money.
It’s called SIM swapping and I’ve seen it happen.
Even if you haven’t been notified of a fraudulent unemployment claim, call your mobile carrier and get yourself set up with a PIN only you would know.
Our phones are the keys to the kingdom in many cases, and cleaning up the mess caused by #SIMswapping is a nightmare.
Thank you Shannon for this insightful warning. Additionally, everyone who has been touched by fraud or scamsScams A Scam is a confidence trick - a crime - is an attempt to defraud a person or group after first gaining their trust through deception. Scams or confidence tricks exploit victims using their credulity, naïveté, compassion, vanity, irresponsibility, or greed and exploiting that. Researchers have defined confidence tricks as "a distinctive species of fraudulent conduct ... intending to further voluntary exchanges that are not mutually beneficial", as they "benefit con operators ('con men' - criminals) at the expense of their victims (the 'marks')". A scam is a crime even if no money was lost. would immediately change their email password. Your phone and your email are not the way to verify your identity – keep them safe no matter what!
TAGS: SCARS, Information About Scams, Anti-Scam, Scams, Scammers, Fraudsters, Cybercrime, Crybercriminals, Scam Victims, Online Fraud, Online Crime Is Real Crime, Scam Avoidance, Unemployment Fraud, Financial Institution, Passwrod Reset, Mobile Phone Safety