Feds, states warned: Clever thieves robbing you blind

Tuesday, March 2, 2021
 | 
Chris Woodward (OneNewsNow.com)

Burning moneyRampant fraud is overwhelming pandemic-related unemployment programs and a taxpayer watchdog says government should be doing more to stop it.

With the floodgates set to open on another round of unemployment aid, states are being hammered with a new wave of fraud as they scramble to update security systems and block scammers who already have siphoned billions of dollars from jobless programs.

A fraud review by The Associated Press finds that many states have failed to safeguard the flow of funds from fraudsters and some states will not publicly acknowledge the extent of the problem.

David Williams, president of Taxpayers Protection Alliance, tells One News Now he agrees with the AP investigation and says both the federal government and state governments have failed.

“There is dual responsibility here,” he advises. “The federal government should be making sure this money is spent wisely but the state governments, they're the ones that are on the ground that should be monitoring this very closely."

According to The Associated Press, the massive sham springs from prior identity theft from banks, credit rating agencies, health care systems and retailers. Fraud perpetrators, sometimes in China, Nigeria or Russia, buy stolen personal identifying information on the dark web and use it to flood state unemployment systems with bogus claims.

"The American people should take notice and not reward members of Congress for this," says Williams. "Regardless of political party, if a member of Congress isn't doing their job, they should not be a member of Congress for much longer."

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