Widespread Unemployment Fraud Is Overwhelming State Systems
Back on Sept. 17, 2020, NBC News proclaimed that “fraudsters steal millions from unemployment coffers, adding to pain of those still waiting for benefits.” Here’s how that story begins:
Over $1 billion in unemployment aid is being threatened by fraud, in schemes ranging from lying about personal income to sophisticated cybercrime, state and federal officials told NBC News. The main target: Pandemic Unemployment Assistance.
The widespread fraud is plaguing unemployment systems nationwide, hampering states’ efforts to get money into the right hands. The U.S. Secret Service has launched over 500 investigations in 40 states as part of a multiagency effort to protect taxpayer dollars.
“It’s very rampant,” David Smith, the agent in charge of the investigation, said in an interview. “Criminals knew the priority was to get that money into the hands of Americans sooner than later. So they just jumped on an opportunity.”
And the situation has only gotten worse over the past several weeks. Here’s a roundup from around the country:
California: “EDD fraud involves stolen identities, dark web, international crime”
Quote: “Thousands of envelopes containing fraudulent California Employment Development Department claims that were sent to residents across the state are part of several fraud schemes, a KCRA 3 investigation found. … The schemes involve identity theft, the dark web and possibly an international crime ring.”
Arizona: “Arizona investigating up to 2 million fraudulent unemployment claims”
Quote: “Arizona may have been hit with as many as 2 million fraudulent unemployment claims, 3 On Your Side has learned. The new number dwarfs previous estimates, as scammers continue to target taxpayer dollars in unemployment systems across the country.”
Rhode Island: “RI State Police: Nearly 18K unemployment insurance fraud claims filed since April”
Quote: “Thousands of (Read more...)
*** This is a Security Bloggers Network syndicated blog from Lohrmann on Cybersecurity authored by Lohrmann on Cybersecurity. Read the original post at: https://www.govtech.com/blogs/lohrmann-on-cybersecurity/widespread-unemployment-fraud-is-overwhelming-state-systems.html
