Slashdot Mirror
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."
Go to hell, please.
Love Always,
News For Turds
FIRST CARDS!
-- You are such a fucking fag
Remove the unemployment benefits.
Also has the added bonus of forcing the people to actually work.
More than 9 million American consumers fall victim to identity theft each year. But the most underpublicized identity theft crime is one in which thieves defraud state governments of payroll taxes by filing fraudulent unemployment claims.
It can be a fairly lucrative scheme, too. 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.
The victims in this crime--the state work force agencies that tirelessly oversee our unemployment insurance programs and the U.S. Department of Labor--are reluctant to discuss this topic for obvious reasons.
The net result of this fraud is that unemployment taxes are going up.
While credit card companies invest extraordinary amounts of money to detect identity fraud, state governments are lagging behind on investing in systems that could detect and deter fraud. Moreover, some federal IT initiatives that could slow down unemployment insurance claims fraud are moving at a glacial pace.
The slow response of state and federal agencies is quickly threatening the integrity of the unemployment insurance system. It turns out that crime is a very efficient market and word spreads quickly. Got a stolen Social Security number? You can more easily turn it into money by defrauding the government than by defrauding the credit card companies.
The net result of this fraud is that unemployment taxes are going up, and that makes it that much harder for small businesses and big businesses to do business. Even more, higher payroll taxes slow down economic growth because they make it more expensive to hire new employees.
Clearly, companies that have sensitive data must take the proper steps to protect the data. But it's public awareness and governmental systems that ultimately will save the day. Here's what needs to happen:
Microsoft's spam plan
New supercomputers overhaul top ranks
Telemarketers target cell phones
Digital bullies in classrooms
Should cities be ISPs?
Previous Next
Admitting the problem
Kathy Moore, chief of the Employment Security Office of Special Investigations for Washington state, has started talking publicly about the amount of fraud making its way through the system. Other states need to follow suit and acknowledge that unemployment fraud is hurting small- and big-business economics. Discussing the problem will help rally the allocation of funds needed to adequately address the problem.
Investment in fraud detection software
Software is available on the market that is specifically designed to detect and prevent unemployment insurance fraud, including individual fraudsters and organized fraud rings. Most states have not yet invested in this software. They need to do so--fast.
Accelerating National New Hire Database plan
The soon-to-be-released National New Hire Database will put a dent in individual unemployment frauds. Currently, if a crook works in Illinois and makes unemployment claims in Michigan, it's unlikely the crime will be detected. The new database will make it easier to cross-match new hire data with unemployment claim data to catch those crooks who falsely claim they are unemployed while collecting a paycheck for their job. Let's pick up the pace on this initiative. We've been working on it for far too long.
A national stolen Social Security database
An unemployment claim that is fraudulently made on a stolen Social Security number would be easier to detect if there were a national database of stolen Social Security numbers. At the current time, this initiative isn't even being discussed in the halls of Congress, even though it should be near the top of their agenda. If and when a database is created, the only caveat is that it must possess airtight security features.
A business-as-usual approach by state and federal government agencies won't get the job done.
Increase fraud penalties
If a criminally m
Here in colorado, Our current gov. created a new system that is horribly broken. Apparently the scuttle butt inside the project is that it is a major joke. They have taken a number of systems that worked and simply moved it to one system with fewer safeguards, and it does not work.
I prefer the "u" in honour as it seems to be missing these days.
A conscious sta8d You get distracted AASOCIATION OF in posting a GNAA consistent with the faster, cheaper, Of the above would like to there are about 700 a GAY NIGGER the project faces,
True identity theft would require the actual stealing of someone's identity. In the case of fraud, the person whose SSN has been copied still has his SSN, they have not lost anything. Same with any other copying of personal data.
Backup not found: (A)bort (R)etry (P)anic