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Covid-19 Scammers Driving Unemployment Fraud Across Nation

Bloomberg Law

Unemployed Americans aren’t the only ones waiting for the next pandemic relief check. A slew of fraudsters, including an organized Nigerian cybercrime ring, are also looking to get paid.

And they have plenty of tricks to pull it off—like using the names of dead people and personal information collected in previous data breaches to create false beneficiaries to gain access to benefits meant to help workers.

At least 11 states are seeing an increase in fraudulent unemployment insurance activity fueled by the millions of claims coming in each month and additional federal dollars being offered to the unemployed due to the coronavirus pandemic.

Places including Arizona, Colorado, Maryland, New York, Ohio, Texas, and Washington combined are reporting billions of dollars in fraud, according to a Bloomberg Government review of unemployment actions across the nation. States and the U.S. Department of Labor and FBI have issued alerts.


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