“These are frightening levels of fraud,” he said.Ĭalifornia has been the biggest target, with an estimated $11 billion in fraudulent payments and an additional $19 billion in suspect accounts. Brady said the $63 billion estimate “is larger than the entire budget of the Department of Homeland Security.” Kevin Brady of Texas, the ranking Republican on the House’s powerful Ways and Means Committee. “We’re all learning that there is an epidemic of fraud,” said U.S. The Labor Department inspector general’s office estimates that more than $63 billion has been paid out improperly through fraud or errors - roughly 10% of the total amount paid under coronavirus pandemic-related unemployment programs since March.
Justice Department is investigating unemployment fraud by “transnational criminal organizations, sophisticated domestic actors, and individuals across the United States,” said Joshua Stueve, a spokesman for the department’s criminal division.įederal News Network's Open Season Exchange: Want to know what to consider when evaluating plans or weighing changes? Find out from OPM and benefits experts what you need to know as you make your health and dental benefits selections for the coming year. 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. The massive sham springs from prior identity theft from banks, credit rating agencies, health care systems and retailers.
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 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. COLUMBUS, Ohio (AP) - 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.
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