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Many Americans Fall Victim to Unemployment Aid Fraud
WASHINGTON—Generous unemployment benefits put in place by the CARES Act and subsequent relief packages to respond to pandemic-related joblessness have become an easy target for identity thieves and other criminals. Most states have been hit by fraud committed on a vast scale, mainly by international organized crime rings.
In March, the Labor Department inspector general’s office estimated that more than $63 billion in unemployment benefits had been paid out improperly through fraud or errors since the beginning of the pandemic.
Rep. Jackie Walorski (R-Ind.) called it “a frightening number” that exceeds “the entire budget of the Department of Homeland Security.”
New-yorkUnited-statesNigeriaWashingtonUzbekistanColoradoChinaCaliforniaIndianaRussiaAmericansAmericanCOVID Unemployment Sees 4,800% Spike in Fraud, Identity Theft, CEO Says Newsweek 3 days ago Jon Jackson © Olivier Douliery/AFP via Getty Images In this photo illustration, a person files an application for unemployment benefits on April 16, 2020, in Arlington, Virginia.
The expansion of eligibility for jobless benefits to self-employed individuals during the coronavirus pandemic has caused a 4,800 percent increase in unemployment fraud cases, according to an identity theft expert speaking Monday at a House Ways and Means Committee roundtable.
Eva Velasquez, CEO of the Identity Theft Resource Center, recited that figure during a presentation titled "$60 Billion and Counting: The Consequences of Unchecked Pandemic Unemployment Fraud." She said that identify theft increased during the pandemic and, rather than slowing down, "if anything, we're seeing it increase."
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