400 Billion Unemployment Fraud – Scary Story

The current technological advancement is jaw dropping. Within a few clicks we can buy tickets, watch movies, order literally anything we want and as a result, the people are more eager to shift to the online world and embrace the convenience it brings to the table. Criminals behind 400 Billion Unemployment Fraud count on people that do not have enough knowledge about the online world and will utilise any way necessary to monetize their skills.

In this detailed report, we are going to discuss the largest heist in modern history which was committed by an anonymous group of people and sadly, most of the culprits never faced any consequences for their actions.

This firm of hustle was so successful that people started making detailed tutorials on how to take advantage of the system and they sold the videos on dark web for ridiculous prices. The United States was not ready to face this type of problem and as the Pandemic was in full swing, they had their hands full.

Ultimately, this incident made the criminals thousands of dollars and the government lost tens of billions of dollars. After the loopholes were exposed, the government is said to have closed the loopholes. However, as the damage was already done, we do not know the end goal of the parliament.

The loopholes in the system were taken advantage of mainly because of the stolen identities and that is the core of the problem. We have more disturbing data to share with you, stick with us till the end to know everything about this incident.

400 Billion Unemployment Fraud Explained

The Pandemic showed to the entire world how feasible our economy was. Working class was living paycheck to paycheck and most people never had much emergency funds. Corona curveball caught everyone off guard and the way it pushed people towards the dark side of life was unimaginable to say the least.

People were not only losing their jobs, but also their mental health and it led to a drastic rise in the poverty levels and crime rates in some parts of the world. Government had to intervene or else things would have taken a turn for the worse.

We can debate about whether the government really helped the poor or not all day, but the bottom line is that it did a favor for the economy and we as public have to be thankful for that. Bunch of criminals took advantage of the system and the resulting event is 400 Billion Unemployment Fraud.

Basically people running this operation used identity theft to apply for unemployment benefits and cashed out. Obviously, as people in the top management had their hands full, they could not implement the distribution effectively and as a result, people that were really struggling never received any benefit.

In case you are wondering, know that a lot of things happened in the middle and as always ingenious people with ill intentions got the best of the situation. On the other hand, political parties were pretty busy with blaming one another and they did not hold their end of the bargain upto standards. 

Methods used by the Criminals

The advancement of technology works both as a boon and a curse. Scammers usually are exploding things or flaws in the system and due to the way the internet works, it is hard to track them in most cases.

Things like TOR browsers, dark web are something which just cannot be eradicated and authorities are trying their best to deal with this phenomenon. A fair share of the blame can be put on people as well, because they also play a part in the act.

Just by being educated about the safe practises of the internet, most types of frauds can be put to rest. Creating Awareness is one thing, but ultimately, people have to implement them.

Stolen identities

Many organisations and institutions have shifted over the online realm to conduct most of their activities. In other words, data about people are stored in not so secure ways and if hackers get hold of that information, they can use it for a lot of reasons. Stolen identities are most commonly used for committing financial fraud.

Once the data is obtained by the skilled crooks, they use it to apply for small loans, payday loans and other associated things that eagles them to get some quick cash. Generally, victims will have no idea about what is happening until it is too late. The resulting consequences do not end with financial loss, but the credit score is also going to be severely damaged. 

Phishing

Phishing is the method scammers use the most. They pretend to be a government entity, big brand or people from the bank. Narratives used by them are going to be vague yet generic. Their main intention is to collect data and they will be very cautious about their approach.

Of course, if you look closely, you can find flaws, but average people won’t be able to spot them. As this issue is becoming alarmingly common, it is better to take a step back whenever you are asked for your confidential details. Just remember that legitimate organisations will never ask you for it and shady firms will pester you for the same. 

Detailed Tutorials on Dark Web

Dark web is a portal that allows people to communicate with each other anonymously. Criminals often use this mode to sell illicit items and the preferred system of payment is cryptocurrencies. Coins like Monero are hard to trace and it provides ample opportunities for the culprits to get away from the scene.

Moreover, tumblers and other related tools which are readily available in the dark web also help scammers to an enormous extent. As the 400 Billion Unemployment Fraud gained traction, few smart criminals started creating a tutorial on how to exploit the system and started selling them.

It goes without mentioning that other crooks were interested in the idea and purchased it and monetised the content. To paraphrase the model, they basically created a marketplace wherein crooks can learn the ways of committing financial fraud. This incident came to light, but unfortunately it was too late then and the damage caused was in the bracket of billions of dollars. 

What did the Criminals do with their funds?

Many criminals that profited from the 400 Billion Unemployment Fraud quickly found ways of hiding their cash. On one hand, the amount was too small for the government to employ investigators on individual cases and on the other, the victims were also scared.

With everything going on with the virus and the vaccines, for obvious reasons, the government could not pay attention to the fraud and most culprits walked away without any consequences. According to many theories on the web, the money gained by the crooks is said to have gone into drugs, child tracking and to cause riots in the country.

Note that none of the theorems are proved which means at this point, every available information is just a narrative and an allegation. The thing which needs to be fixed to put an end to the scam has nothing to do with the monitoring of the funds, instead the infrastructure and the system needs to be updated. 

Long term Consequences of 400 Billion Unemployment Fraud

Law enforcement authorities are doing their best to track down the crooks. Whether they are successful or not is not the question, but the consequences this event set in motion is the one to focus on. First and foremost, the people that were really hit by the Pandemic missed out on the package.

Legitimate ones that were supposed to get the money were pushed into a lot of financial stress and the number of homeless people rose sharply. On the bigger scale, injection of trillions of dollars and billions of lost value is bound to cause economic turbulence.

While no theory can accurately predict where the situation is going to end, it is safe to assume that there might be a big trouble brewing. Inflation is the obvious effect, but when billions are lost, domino effects are hard to detect and impossible to put an end to.

Also, we strongly suggest people to regularly change their login credentials and just to be on the safer side, check your credit scores on a regular basis. If you ever see something strange going on with your banking account or apps, then immediately block or freeze your accounts. Remember, being too safe is never a bad thing especially in the current environment it is better to avoid any impulsive decisions.

Are unemployment numbers in the US real?

400 Billion Unemployment revealed one thing for sure and that is the data about the real unemployed people in the US is not as reliable as people thought. Think about it for a moment, if crooks can artificially inflate the number of claims for their benefits and cheat the whole system within no time, how long will it take for them to do the same in other sectors?

We are not saying or implying in any way that the US is publishing fake job numbers. However, you need to understand that numbers from official authorities are not always correct and the major share of the blame is on the old outdated methods employed by them.

Now, the main question is whether the jobs data so far from the US is legit or not? Sadly, we as common people will never know the answer to the question posted above. All we can do is take proper precautions and plan ahead for the next crisis.

Updating the systems

Governments around the world are extremely slow when it comes to reacting to crises. At this time particularly, we cannot blame the government for everything as they were dealing with a deadly virus. Focusing on the end solution must be the goal now and that plan is not perfect.

Regardless of how many layers you encrypt the servers with, in the end nothing will make the data completely immune to attacks. So, the best thing to do would be to embrace modern technology and use things like API and other real time updates to notify the users.

Early detection of problems is a good thing and it does not give much time for the criminals to react as well. With an ideal system with real time integration, the fraudulent crimes and the crime rates can be brought down substantially.

The solution seems obvious, but to update the entire system and encrypt it, the government may need a lot of time. After all, these kinds of activities are not something they can do with a click of a button, right?

400 Billion Unemployment Fraud Endnote

400 Billion Unemployment Fraud acts like a reminder of how weak the entire financial system of the United States really is. It is an alarming incident and using the data gathered so far, it does not look good for the taxpayers. Crooks have once again managed to not only outsmart the entities, but also profit immensely while doing so.

While this event has given the citizens a big shock, do not let past trauma bother you. Embrace the digital side, but do not forget to ensure security and privacy at all times.

Lastly, even if you notice small changes related to any of your bank account, email or any other important thing, then act on it immediately. In case you need to employ professionals to do their job, then do not hesitate. If you need free consultation on any consumer finance related question, use the contact form below to get in touch with our team. 

As humans cannot visit their past, our advice to everyone is to take proper steps while navigating the digital space. Things like 400 Billion Unemployment Fraud may happen once in a while, but still they have dire consequences and people who get caught in the middle will suffer a lot.