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Relief programs lead to massive fraud, spike in identity theft


The jobless payments, including an extra $300-per-week federal benefit that Democrats extended through Sept. 6, have been paid to death row inmates in California and fraudsters in Nigeria and Russia. The benefit is on top of state payments that average $320 per week.
Experts say scammers have exploited a provision in the CARES Act of March 2020 that allowed the self-employed, independent contractors and “gig” workers to file for unemployment benefits for the first time.
The flood of money into the unemployment system also has caused identity theft to soar.
Eva Velasquez, CEO of the Identity Theft Resource Center, told House Republicans on Monday that her organization reported a 4,800% increase in the number of unemployment identity fraud cases last year. ....

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Some States Insist White House in Denial about Effect of Enhanced Unemployment Benefits


Economy
Besides affecting the workforce, enhanced benefits are a magnet for fraud.
Min
America’s governors are disagreeing with the Biden administration about what’s behind April’s disappointing job report, which showed far fewer new jobs than expected and an uptick in the unemployment rate. Yet the White House on Monday repeated its claim that generous unemployment benefits are not a factor. 
“We don’t see much evidence that the extra unemployment insurance is a major driver in people not rejoining the workforce,” White House press secretary Jen Psaki said Monday, pointing instead to vaccination rates and worries about child care because many schools have yet to reopen.  ....

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COVID Unemployment Sees 4,800% Spike in Fraud, Identity Theft, CEO Says


COVID 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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