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Wess Haubrich

17,000% Increase in Un-Employment Fraud Reported in 2020

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Wess Haubrich
Wess Haubrich
 2021-05-09

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unemployment fraud is expected to tripleHW & Co

This came a long with a 258% increase in tax fraud.

As if 2020 couldn’t possibly get to be a more horrible a year, it is now being reported that un-employment fraud rose by a jaw-dropping 17 thousand percent that year.

All State Identity Protection reported the finding. They pointed out that COVID-19 forcing millions online for more of their typical activity – like tele-commuting or learning – was also a substantial boon to digital thieves.

As if that 17 thousand percent figure weren’t enough, tax fraud also rose by an astonishing 258% in 2020. The un-employment fraud metric is expected to at least triple by the end of 2021.

Pre-pandemic, un-employment fraud was only 0.1% of all identify fraud reported to All State Identity Protection. That number has now risen to at least 70%.

To put a dollar figure on the claims, it is estimated that countrywide scammers made off with around $36 billion through fraudulent unemployment claims. They’ve done this mainly through exploiting the patchwork of state unemployment laws in the United States.

All State Identity Protection recommends the following steps to protect yourself:

  1. “Notify your employer and state unemployment office. This will help prevent further fraudulent claims from being processed by the state.
  2. File complaints with the Department of Justice and Department of Labor's Office of Inspector General. Doing so will notify law enforcement of the theft and help to detect and prevent fraud within Social Security Administration programs.
  3. If you have an identity protection provider – like AIP – notify them immediately. Allstate Identity Protection specialists go the extra mile to help customers recoup and recover as quickly as possible.”

Journalist and dogged student of all things forensic, Wess Haubrich, examines the nitty, gritty details you didn’t know about famous (and not so famous but equally weird) crimes and their unseen motivations. Thanks for reading!

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