Independent Banker - January 2021 - 29

" During times like this, we double down on
education, not only internally with our staff,
but externally with our customers.
That's where we can really add value by
helping people avoid these scams. "
-JEFF NEWGARD, BANK OF IDAHO
member banks told them that they had
received UI claims for bank employees
who are still employed and didn't
make the claim themselves.
A " perfect storm " of factors
Suzi LeVine, commissioner for
Washington's Employment Security
Department, says the UI fraud is the
result of a " perfect storm " that takes
advantage of " a tremendous amount
of money that was needed to get out
quickly " to people who lost their jobs
due to the pandemic.
States are losing money on the
attack, LeVine says. As of midOctober,
however, her department
has been able to recover a good deal
of the $576 million lost and is now
trying to recoup more of the funds
from financial institutions with
the FBI's help. Banks that receive
deposits from Washington state
that look suspicious should email
ESDGPFraudbank@esd.wa.gov and
include the full name of the claimant
or accountholder and the bank
account number for deposit.
" We are also hoping to learn
more from the banks that have been
dealing with this fraud [about] how
they are verifying identities and
doing other things to combat this, "
LeVine says, " so we can be better at
adopting best practices. "
FNBC Bank in Ash Flat, Ark., had
customers who were solicited to be
money mules for the UI fraud scam
described by the Secret Service,
says Tara Allen, the $565 millionasset
bank's Bank Secrecy Act (BSA)
security officer.
Fraudsters send money from
a state's UI program to FNBC
customers, Allen says. The fraudsters
then contact the customers,
posing as officials from state UI
departments, telling them the state's
system had been hacked and asking
the customers to send the money
QUICK STAT
$576M
in state and federal unemployment
claims in Washington state has been
siphoned off by fraudsters
Source: Washington Employment Security Department
back to the state.
" The majority of customers have
come into the branch wanting
to withdraw the funds and go to
Walmart to send out a MoneyGram,
depending on what the scammer
directed them to do, " she says,
" but we were fortunate to identify
the scam and shut it down before
the customer sent the funds out.
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Independent Banker - January 2021

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