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Fraud overwhelms pandemic-related unemployment programs

Massive fraud in the nation's unemployment system is raising alarms even as President Biden and Congress prepare to pour hundreds of billions of dollars into expanded benefits.

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Fraud hits unemployment programs | firstcoastnews.com


California has been the biggest target, with an estimated $11 billion in fraudulent payments and an additional $19 billion in suspect accounts. Colorado has paid out nearly as much to scammers — an estimated $6.5 billion — as it has to people who filed legitimate unemployment claims.
Other estimates, according to AP reporting across the states, range from several hundred thousand dollars in smaller states such as Alaska and Wyoming to hundreds of millions in more populous states such as Massachusetts and Ohio.
The nationwide fraud has fed on twin vulnerabilities: a flood of jobless benefit applications since the pandemic began that has overwhelmed state unemployment agencies and antiquated benefit systems that are easy prey for crafty and persistent criminals.

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Fraud hits unemployment programs

Fraud hits unemployment programs
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Fraud overwhelms pandemic-related unemployment programs | News, Sports, Jobs

Fraud overwhelms pandemic-related unemployment programs | News, Sports, Jobs
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Fraud overwhelms pandemic-related unemployment programs

Fraud overwhelms pandemic-related unemployment programs
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Fraud overwhelms pandemic-related unemployment programs | News, Sports, Jobs

Fraud overwhelms pandemic-related unemployment programs | News, Sports, Jobs
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Fraud overwhelms pandemic-related unemployment programs | News, Sports, Jobs

Fraud overwhelms pandemic-related unemployment programs | News, Sports, Jobs
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Fraud overwhelms pandemic-related unemployment programs

Fraud overwhelms pandemic-related unemployment programs
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Unemployment aid still rife with fraud as another round set to flow


Geoff Mulvihill and Andrew Welsh-Huggins
Associated Press
COLUMBUS, Ohio  — With the floodgates set to open on another round of unemployment aid, states are being hammered with a new wave of fraud as they scramble to update security systems and block scammers who already have siphoned billions of dollars from pandemic-related jobless programs.
The fraud is fleecing taxpayers, delaying legitimate payments and turning thousands of Americans into unwitting identity-theft victims. Many states have failed to adequately safeguard their systems, and a review by The Associated Press finds that some will not even publicly acknowledge the extent of the problem.
The massive sham springs from previous identity theft from banks, credit-rating agencies, health-care systems and retailers. Fraud perpetrators, sometimes in China, Nigeria or Russia, buy stolen personal identifying information on the dark web and use it to flood state unemployment systems with bogus claims.

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Correction: Virus Outbreak story

Correction: Virus Outbreak story
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