Unemployment scam could delay benefit checks for Massachusetts jobless
A national scheme to exploit loopholes in the federal coronavirus unemployment program that has already netted fraudsters hundreds of millions in stolen dollars has struck Massachusetts’ unemployment system.
Officials are warning jobless workers this means they will likely see delays in getting their checks.
“Protecting the integrity of the unemployment system and ensuring benefits are going only to valid claimants is a top priority of the Department of Unemployment Assistance,” Labor and Workforce Development Secretary Rosalin Acosta said in a statement Wednesday.
Organized crime rings are using stolen personal information from earlier data breaches to file “large amounts” of illegitimate unemployment claims in Massachusetts, according to the Department of Unemployment Assistance. Additional identity verification measures intended to root out fraudulent claims will temporarily delay many unemployment payments, according to DUA.
“While the program integrity measures we are taking will unfortunately mean that some claimants will experience temporary delays in payment, we believe these steps are necessary to respond to this unemployment scam. We are working rapidly to respond to this scheme and urge individuals who may have had a false unemployment claim filed in their name to contact the Department.”
DUA did not say how many fraudulent claims the office received or approved, but South Shore Rep. David DeCoste said he suspects it’s a “great number.”
Calls from constituents who believe they were victimized have flooded his office, he said.
Officials from Washington state this week said its unemployment system has paid out hundreds of millions of dollars in fake claims in its race to provide aid to laid-off workers as the coronavirus pandemic took hold.
Pioneer Institute Research Director Greg Sullivan said the “ink was still wet” on the legislation passed in March that increased unemployment payments and extended benefits to workers not typically eligible.
“Every time the government sets up a program that gives away money, there is going to be a group of professional fraudsters out there who will try to game that system and expose its vulnerabilities and rip off the taxpayers,” said Sullivan, a former state inspector general.
The rush to provide a parachute for the nation’s economy ravaged by the response to the pandemic left it vulnerable to such scams, Sullivan said. More than 43 million Americans have filed unemployment claims since the pandemic began, stressing safety net programs.
In Massachusetts, more than 1.23 million have submitted jobless claims for traditional unemployment benefits or through the expanded Pandemic Unemployment Assistance program since mid-March.
It’s unclear how much — if any — of the $2.3 billion in benefits Massachusetts has paid out since mid-March has gone into scammers’ pockets, but DUA said there is an ongoing investigation.
Herald wire services contributed to this report.
from Boston Herald https://ift.tt/2M1bDFs
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