Desperate times call for desperate measures. As businesses began to shut down in March 2020, the unemployment rates skyrocketed, and those rates are still climbing. In spite of this, this predicament opened the door for a wave of fraudulent claims. While many scammers are cashing in on this scheme, there’s a high probability of it ending badly. States are now cracking down on these unemployment scams and are revealing how it’s affecting them.
Kansas will be temporarily shutting down its unemployment system to fight against the fraudulent claims that are rolling in. The Kansas Department of Labor has blocked over 45,000 fraudulent claims in 2020 alone.
The Buckeye State is currently reviewing over 500,000 claims with the fear that they’re a fraud. It is reported that more than half of Ohio’s PUA claims were flagged for fraud.
The Golden State has claimed to pay at least $11 billion in fraudulent claims at the start of the pandemic.
The smallest state reportedly lost over $21 million due to fraudulent claims.
The Indiana Department of Workforce Development claims that scammers are going to extreme lengths to steal people’s information. Commissioner Fred Payne mentioned scammers are creating fake websites, social media pages and even purchasing people’s information on the web. As of now, three out of four claims need additional verification.
The process of fulfilling these claims is heavily delayed due to the additional verification process states need to do. Meaning, individuals who are waiting for unemployment benefits may have to wait a little longer until these states figure out who’s scamming. As the weeks progress, we’ll hear from more states about its overall impact on the country. Until then, experts suggest people be on the lookout for any 1099-G forms arriving in the mail. That can be an indicator that you are a victim of fraud.