Identity Thieves Drain Unemployment Benefit Funds

Makarand writes "According to a News.com.com article, the defrauding of state government unemployment benefit programs is the most underpublicized identity theft crime and the states are not doing much about it. Identity thieves are using stolen social security numbers to file false unemployment claims and collecting benefits because the states have no systems in place to deter fraud. In fact, it is easier to convert stolen identity data into money by filing false unemployment claims than going after the credit card companies." From the article: "File a false unemployment claim and you can receive $400 per week for 26 weeks. Do it for 100 Social Security numbers and you've made a quick $1.04 million. It's tough to make crime pay much better than that."

Comments

how can it be that easy?

[MattW]

In Texas, when someone files an unemployment claim, their employers within their "eligibility window" - ie, those they worked for the last X months (18? 24?) get notices. If their unemployment claim is granted (which requires they have been terminated not-for-cause, or that they quit for very specific few reasons, like harrassment), it is "debited" to the employer, and the employer's unemployment tax rate may go up as a result.

I can't imagine how they manage to file unemployment claims without the employers knowing and going to the person and saying, "What the heck? You're still employed." The jig would be up pretty quick. In Texas, the first phone interview includes a call to the employer(s) and takes place within days of the filing, probably before the first check is paid.

Since the unemployment fund is paid into through payroll deductions linked to the SSN, by the employer, I don't see how this could succeed, at least in Texas.

BAD ADVICE Re:abuse of SSN

[spoonyfork]

Advise for everyone: start using fake SSNs and DOBs whenever possible

Good god someone MOD PARENT DOWN. Your advice is credit fraud which could get someone who has the fake SSN in trouble... as well yourself. Besides, if you provide correct information everywhere else you could have multiple SSNs tagged to your credit report which is evidence of fraud. BAD ADVICE, DO NOT DO THIS. If you don't want to provide your real SSN/DoB then don't give it out.