More info on the ACH scam:
The United States Secret Service has received reports of large-scale fraud against state unemployment insurance programs. The primary state targeted so far is Washington, while there is also evidence of attacks in North Carolina, Massachusetts, Rhode Island, Oklahoma, Wyoming and Florida. It is extremely likely every state is vulnerable to this scheme and will be targeted if they have not been already. In the state of Washington, individuals residing out-of-state are receiving multiple ACH deposits from the State of Washington Unemployment Benefit Program, all in different individuals' names with no connection to the account holder. The financial institutions targeted have been at all levels including local banks, credit unions and large national banks...
ACH Unemployment Fraud Scheme
Important Action
As you develop steps to mitigate risk and help identify potential fraud, the following is a list with the Company Name and Company Entry Description as provided by the Secret Service. A few include the Company ID.
Washington
"WA ST EMPLOY SEC UI BENEFIT"
"WA ST EMPLOY SECUI BENEFIT"
"WA ST EMPLOY SEC - UI BENEFIT"
"WA ST EMPLOY SEC"
Company ID listed as 1911762161
Georgia
"GA DEPT OF LABOR REG UI"
Texas
"TWC-BENEFITS UI BENEFIT"
"UI BENEFITTWC-BENEFITS"
Company ID 2146000422
Rhode Island
"RIDLT-UI UIDD"
North Carolina
"NCDES-UIBENEFITS UI BENEFIT"
Massachusetts
"MA DUA CARES ACT"
"MA DUA MA UI"
"MA DUA"
Company ID listed as C046002284
Oklahoma
COMPANY NAME DESCRIPTION SEC CODE COMPANY ID
CONDUENT DEP TRANSF PPD 7131996647
Wyoming
"WYOMING DWS UI BENEFIT"
Florida
"FL DEO UI BENEFIT"
Maryland
"Maryland Unemployment BEN (benefits)"
Vermont
Maine
"Maine Dept of Labor UMEMP COMP"
Company ID listed as 1716000001
Michigan
"UI BENEFITUIA PRE-PAID CAR"
"UIA PRE-PAID CAR UI BENEFIT"
Company ID 1382538297
Minnesota
"MN DEPT OF DEED"
"MN DEPT OF DEED UI BENEFIT"
Montana
"STATE OF MONTANA MT30999".
It is critical that you review your ACH edits and/or posts and return any suspect ACH items. One condition to watch are ACH items where the incoming names do not match the account name, this may be an indicator of a suspect ACH item. Please consult your legal and regulatory teams for additional guidance.
Below is a list of Q&A provided by NACHA regarding this issue:
Does an RDFI have liability for a fraudulent ACH payment that automatically posts to an account?
No, the RDFI is not liable and is not required to verify that the names on the record match the names on the account.
What return reason code should we use to return an entry if we catch it within the 2-day timeframe?
NACHA recommends using R03, R16, or R17. Always use the code that most closely describes the reason for return when there is not an exact match. See Appendix Four in the NACHA Operating Rules for a complete list of return codes.
What return reason code should we use to return an entry if it is past the 2-day return timeframe?
NACHA recommends that you call the ODFI to get permission to return the entry as R06. You can also use R23 for the return.
What should we do when we discover fraud and only a partial amount is still in the account?
NACHA recommends that you call the ODFI to ask for directions for sending the partial payment back. To identify the ODFI, you can go to frbservices.org and search by the R&T number to find the ODFI or you can contact the Fed.
What should I tell my account holder that has inadvertently or intentionally got mixed up in this fraud?
Account holders will want to review their accounts to ensure that they have not been impacted by the fraud. It would be a good reminder to let them know the timeframe that they have to report fraud items – 60 days.
Let the clients also know that the Secret Service is investigating this Nigerian Fraud ring and they will likely be contacted by them.
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Mary Fowler
Chief Executive Officer
The Peoples Bank
Magnolia AR
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Original Message:
Sent: 06-02-2020 12:26
From: Mary Fowler
Subject: FRAUD!! SCAMS!!
Has anyone found effective ways to prevent customers from falling for all the scams going on? We are getting fraudulent ACH's for $4-8,000 a pop and the customers are getting the money and sending it to the scammers before we know it's going on. And that's just one example!
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Mary Fowler
Chief Executive Officer
The Peoples Bank
Magnolia AR
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