STEALING FROM THOSE IN NEED

A top official with the U.S. Secret Service said Tuesday that coronavirus-related fraud could lead to $30 billion in federal relief funds being stolen by criminals.

“Congress has appropriated nearly $3 trillion to support the American economy, the largest-ever economic stimulus package in U.S. history,” Secret Service Assistant Director Michael D’Ambrosio testified during a Senate Judiciary Committee hearing on coronavirus-related fraud.

He emphasized that “even if we assume a very low rate of fraud, of just 1 percent, we should still expect more than $30 billion will end up in the hands of criminals. And that is likely an underestimation of the risk, and just one portion of the full range of risks at play.”

D’Ambrosio noted that much of this theft is occurring online, such as through cyber criminals targeting Americans with malicious coronavirus-related phishing emails, or through targeting cyberattacks at the insecure networks of those working from home.

The Secret Service has taken steps to counter these scams, with D’Ambrosio saying the agency had disrupted “hundreds” of scams and prevented around $1 billion from being lost to malicious actors.

“Countering criminal schemes seeking to exploit the COVID-19 pandemic has become a primary investigative focus for the U.S. Secret Service, and will remain so over the coming years,” D’Ambrosio said.

The COVID-19 pandemic has led to a spike in scams against Americans, including those targeting small business relief funds and stimulus checks from the government.