DETROIT – Three woman have been charged in a criminal complaint for their alleged role in a $1.6 million dollar unemployment insurance fraud scheme aimed
The Maryland Department of Labor said it is still investigating an increasing number of potential fraud cases, but the 11 News I-Team has learned of several instances that apparently slipped through the cracks.One man received an unemployment debit card despite not having filed for benefits. He and his boss said they had problems getting a fraud investigation going until the I-Team intervened.At American Home and Hardware in Elkton, Harry Brown and some of his employees are wondering how they became targets of unemployment fraud and why it took weeks for the Maryland Department of Labor to respond to requests for an investigation. It has been extra stressful at a time where it s stressful enough dealing with the problems the pandemic created for our business, Brown said.Brown told the 11 News I-Team that in December and January, the DOL got the names of six employees supposedly seeking unemployment benefits, but the workers are still on the job and had not filed, including Cole Peterson. I didn t feel unemployed at the time. It was quite a shock, Peterson said. Obviously, somebody out there has gotten their information somewhere to be able to file for unemployment to begin with, Brown said.But then Peterson received an unemployment benefits debit card that arrived at an old address. At that point in time is when it became scary, Peterson said.Peterson said, fortunately, his brother still lives there, saw the letter and gave it to him. He got Bank of America to block the card.Both Peterson and Brown said they repeatedly tried to get a fraud investigation by calling and sending emails to the DOL.Brown sent an email in January to DOL, saying: Fraud, fraud, fraud! This is the third case of fraudulent unemployment claims we have against our account this week. What is going on there? The last response I sent back was: What don t you people understand, I ve already told you, this is fraud, Brown said. Both men said they got no response until the I-Team contacted the DOL.In an email, the DOL told the I-Team: Our Benefit Payment Control team reached out to Mr. Peterson . blocked the fraudulent claim that was filed in his name and removed his Social Security number from the claim. The DOL also said: It is important to note that employers are not charged for any fraudulent claims associated with their account. Both men said they finally did talk to someone in unemployment, and Peterson found out more about the bogus claim. It had listed my incorrect birthdate (with a) 30-year-old address and a bogus email all of those things somehow got through the system, Peterson said.What he could not get answered was: She didn t have any understanding of how it got through, Peterson said.The I-Team asked the DOL questions about unemployment fraud claims, reporting fraud, the transition away from debit cards and for an update on claims processing. The following is the department s response.Increase in Nationwide Unemployment Fraud: With the record number of unemployment insurance claims filed and the additional federal benefits available during the COVID-19 pandemic, states across the nation have continued to see bad actors and fraudsters using illegally obtained data, usually complete identities from previous data breaches, to file fraudulent unemployment insurance claims. The additional $300 offered by the FPUC program has created a nationwide spike in fraudulent claims. The department recently announced that nearly 65% of claims filed since the beginning of the year have been flagged as being potentially fraudulent due to new and existing aggressive security measures in place to protect taxpayers and the integrity of the state s program. However, as fraudsters are becoming more brazen and adapting their tactics, Maryland continues to add new technology and safeguards to prevent and detect fraud. Labor coordinates its investigation into fraudulent unemployment claims with the U.S. Department of Labor s Office of the Inspector General (OIG), U.S. Attorney s Office and local police departments.Reporting Fraud: There are numerous ways for individuals to report unemployment insurance fraud on our homepage at MDunemployment.com. As we see a spike in reports of fraud, the department has assigned additional staff to the fraud team to investigate and block fraudulent claims. If you believe that your information has been used to fraudulently file an unemployment insurance claim, please contact UI s Benefit Payment Control Unit by completing a Request for Investigation of Unemployment Insurance Fraud form and e-mailing it to ui.fraud@maryland.gov.If you received a 1099-G tax form, but did not apply for unemployment insurance benefits in Maryland in 2020, then please complete an Affidavit Form and submit it along with photo ID to the Benefit Payment Control Unit by emailing dlui1099-labor@maryland.gov.If you are a claimant and believe funds have been fraudulently withdrawn from your Bank of America unemployment insurance debit card, please contact Bank of America directly by calling 855-847-2029.If you are an employer and believe a fraudulent claim has been charged to your account, please file a benefit charge protest through your employer portal.Fraud Numbers: We post weekly fraud data on our website, which is available here. This data is broken down by in-state and out-of-state claims. Since the beginning of the pandemic, 447,817 in-state and out-of-state claims have been flagged for fraud and 384,651 (85.89%) have been confirmed as being fraudulent. Direct Deposit: The department recently announced that it is transitioning from Bank of America debit cards to direct deposit with Wells Fargo. This transition is a result of a new contract with Wells Fargo and direct deposit is faster, safer and more convenient. Claims Processing: As of the week ending Feb. 20, the department has paid $10,000,984,421 in state and federal unemployment insurance benefits. Of the 897,900 complete claims filed, 897,900 (96%) claims have been processed with 725,448 (80.8%) claims receiving payment and 136,148 (15.2%) claims being denied. The number of claims pending has decreased to 36,304 (4%). Nearly all of the pending claims are disputed and pending further investigation. These claims cannot be processed until they are investigated due to conflicting information provided by the claimant and the claimant s previous employer.
Victims of unemployment fraud struggling to notify state labor department Victims of unemployment fraud struggling to notify state labor department and last updated 2021-02-11 06:42:44-05 BALTIMORE â While many still wait for their unemployment insurance benefits, scammers have found a way to cheat the system. âMy employer sent me an email. I thought it was like, oh this a spam email, but then when I got the phone call, I knew it was real,â said Dorothea Townes. Townes was informed that someone had used her name and social security number to file a claim for unemployment insurance benefits. âI felt violated, I was depressed, I was overanxious because I never had anything like that done to me before,â Townes said.