DataVisor Global Fraud Watch: October 2020

In the current times of uncertainty, fraud is running rampant. From fraud in healthcare and public assistance to identity theft, no industry, organization, or individual is immune from would-be attackers.

It’s important to stay vigilant and protect yourself from potential vulnerabilities. Here’s a closer look at some of the most recent fraud attacks around the world.

Coronavirus Fraud Scheme Revealed $590,000 in Stolen Funds

When thousands of businesses were forced to close and millions of workers were sent home, the Paycheck Protection Program was supposed to provide a financial cushion. Some individuals, however, ended up getting more than their fair share.

One Detroit, MI resident racked up $590,000 in fraudulent funds intended for small businesses. He claimed his business, “Motorcity Solar Energy,” had 68 employees on payroll and needed to cover $2.8 million in related expenses. However, the business was found to be inoperational with no employees.

Funds were instead used to purchase two Cadillacs, a Hummer, and a Dodge Charger, which he will now have to forfeit to repay the money.

One Bankruptcy Fraud Scheme Spans a Whole Decade

A Connecticut man’s decade-long crime spree finally came to an end after one victim’s credit card was declined and a history of identity theft and bankruptcy was discovered. Using another person’s identity (including his own family members), he obtained loans and then filed for bankruptcy to erase the debt before repeating the process with another victim.

After 19 instances of loan fraud over the span of 10 years, he was finally caught when the latest victim noticed a bankruptcy filing in her name.

Paycheck Protection Program Doesn’t Cover Emotional Support Animals

PPP loans were intended to help businesses survive closures due to the pandemic. The key, however, is that those businesses have to be legitimate.

One man, however, went to great lengths to illegally obtain funds. His fake businesses were said to register emotional support animals, and he created fake bank records and documents to support their legitimacy. Instead, the money was used to buy a yacht, a car, and a house. He has since been charged with wire fraud, bank fraud, money laundering, and stealing government funds.

Disgruntled Employees Hacks System to Reroute Critical COVID Supplies

At the onset of the pandemic, companies had to make tough decisions to stay afloat, which meant some employees simply had to go. This was the case for a former VP of a Georgia-based healthcare company, who was terminated in March 2020.

After receiving his final paycheck, he hacked into the company’s shipping tracking system to delete shipping information. To do this, he used a fake user account he had created during his employment, which he used to create a second fake account and edit or delete thousands of records.

The actions carried a heavier consequence, however, since the supplies being shipped were intended to help fight the pandemic on the frontlines. Items like PPE and medical devices were delayed as a result.

The Bottom Line

Fraud has many faces, and it is no respecter of persons. From decades-long identity theft to recent COVID-19-related scams, fraud is, unfortunately, alive and well. Ensure your fraud protection is up to the task of detecting and preventing fraud before it happens. Request a demo of DataVisor’s comprehensive fraud detection platform today.