Chinese government-affiliated hackers stole more than $20 million in COVID-19 relief funds dedicated to small businesses and unemployment benefits, the Secret Service revealed.
The theft was discovered as part of a larger investigation in which $286 million was recovered in August, traced back to 15,000 fake accounts created at a Texas bank. Approximately $87 billion in Economic Injury Disaster Loans have gone missing since the federal program was formed in the COVID-19 pandemic’s early stages.
<mediadc-video-embed data-state="{"cms.site.owner":{"_ref":"0000017c-2d27-d823-a5ff-aff793af0000","_type":"00000161-3461-dd66-ab67-fd6b93390000"},"cms.content.publishDate":1670266871076,"cms.content.publishUser":{"_ref":"0000017f-e2f4-de00-a7ff-e7fff8030000","_type":"00000161-3461-dd66-ab67-fd6b933a0007"},"cms.content.updateDate":1670266871076,"cms.content.updateUser":{"_ref":"0000017f-e2f4-de00-a7ff-e7fff8030000","_type":"00000161-3461-dd66-ab67-fd6b933a0007"},"rawHtml":"
var _bp = _bp||[]; _bp.push({ "div": "Brid_70256562", "obj": {"id":"27789","width":"16","height":"9","video":"1200694"} }); ","theme.0000017c-2d32-d5c4-af7f-7d77b7920000.:core:enhancement:Enhancement.hbs.enhancementAlignment":null,"theme.0000017c-2d32-d5c4-af7f-7d77b7920000.:core:enhancement:Enhancement.hbs._template":null,"_id":"00000184-e3a9-da74-a1bd-ebb9d5430000","_type":"2f5a8339-a89a-3738-9cd2-3ddf0c8da574"}”>Video Embed
This latest development identifies a hacking group called APT41 as the culprit, a “Chinese state-sponsored, cyberthreat group that is highly adept at conducting espionage missions and financial crimes for personal gain,” the Secret Service told NBC News.
“The United States is target No. 1 because we are competitor No. 1,” said Nathaniel Fick, head of the State Department’s Bureau of Cyberspace and Digital Policy. “It’s a really comprehensive, multidecade, well-considered, well-resourced, well-planned, well-executed strategy.”
AUTHORITIES RECOVER $286M IN STOLEN COVID-19 RELIEF FUNDS
The funds were stolen in 12 states, but officials believe it could be more widespread. More than 1,000 investigations are ongoing involving both domestic and international hackers. The scope of the Chinese government’s involvement is unclear.
“I’ve never seen [China] target government money before,” cybersecurity expert John Hultquist told NBC News. “That would be an escalation.”
China works with a network of hacking groups, including APT41, that conduct state-sponsored espionage and are possibly directed to target certain entities, officials say. APT41 has also used the names Winnti, Barium, and Wicked Panda.
Five APT41 members have been indicted over the past three years in other cases. They are accused of hacking governments and companies worldwide, then installing ransomware on the systems while also stealing cryptocurrency.
CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER
The defendants said they had “tens of thousands of machines at one time, as part of their efforts to obtain information about others, and also to generate criminal profits,” former Assistant U.S. Attorney Demian Ahn told the outlet.
The defendants have not been extradited.
A report to Congress from the Department of Labor stated that $30.4 billion of the $71.7 billion in unemployment benefits were paid “improperly” in four states that were surveyed, with nearly $10 billion going to fraudsters.
