Cyber Risks · Krebs on Security

How $100M in Jobless Claims Went to Inmates

Summary: The U.S. Labor Department's inspector general reported that about $100 million in fraudulent unemployment insurance claims were paid in 2020 to more than 13,000 people who were in prison, part of roughly $3.5 billion in fraudulent benefits paid to individuals with Social Security numbers filed in multiple states. Fifteen states have contracted with ID.me to strengthen authentication, requiring applicants to submit government ID images, utility or insurance bills, and phone details, with live video chats when applications trigger fraud flags.

Bottom line: California alone disclosed that hackers, identity thieves and overseas criminal rings stole more than $11 billion in jobless benefits last year, roughly 10 percent of all claims, and only 32 of 54 state or territory workforce agencies use the federally funded hub for sharing applicant data across states.

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Topics
Data Breaches
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