Fraud Files: Millions of Americans were unemployed because of the pandemic, but billions of dollars meant to help them was lost to potential fraud. We investigate where the money went and what’s being done to protect your tax dollars in the future.
- The global spread of a novel coronavirus in early 2020 shut down businesses across the country, leaving millions of Americans out of work.“The most embarrassing thing is to tell your kid, I don’t know what we’re going to eat,” one Metro Nashville man told InvestigateTV’s affiliate WSMV in 2020.
According to the Department of Labor’s Inspector General, it was a combination of federal and state mismanagement — combined with an array of scammer tactics — that led to billions in lost taxpayer dollars.The Beginning of the Pandemic In one case, 11 members and associates of a gang were charged in a multimillion-dollar unemployment fraud schemeAccording to the Inspector General, the bad actors allegedly used stolen personal information of more than 800 victims to submit nearly 1,000 claims for unemployment insurance benefits.
“They’re getting manufactured to bypass the system so that they can easily steal money from unemployment insurance agencies,” Talcove said. InvestigateTV reached out to more than two dozen states and combed through several state legislative audit reports to find out how much money was potentially lost due to fraud and identity theft over the last two years. Of the dozen states that responded, all of reported losing over a million dollars. Some lost much more., the California Employment Development Department failed to take fast-enough action at the beginning of the pandemic to bolster its UI fraud detection efforts.
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