Washington finds it paid out hundreds of millions in fraudulent unemployment benefits
"Sophisticated criminals" have used stolen information to fraudulently receive hundreds of millions of dollars in unemployment benefits from the state of Washington.
Suzi LeVine, commissioner of Washington's Employment Security Department, revealed on Thursday that imposters have used the stolen identities of tens of thousands of state residents to apply for benefits. LeVine said an investigation is underway, with the state and federal law enforcement working to try to get the money back. She was unable to give any specific numbers, as this is an active case. "These are very sophisticated criminals who have pretty robust collections of information on people, and they are activating and monetizing that information," she said.
Last week, several media outlets reported on a Secret Service alert about a Nigerian fraud ring targeting Washington as part of an attempt to commit large-scale fraud against a state unemployment program, The Associated Press reports. LeVine said prior to this, officials had become suspicious when employers began calling and saying they received information about benefits that their workers did not request.
LeVine said countermeasures have been taken that "prevented hundreds of millions of additional dollars from going out to criminals and have prevented thousands of fraudulent claims being filed." Now, applicants who set up direct deposit will have to wait longer for their payments, as the state is taking extra time to verify claims.
Since businesses first began to close in March because of the coronavirus, more than 1.1 million people in Washington have filed for unemployment benefits, AP reports. Washington's maximum weekly unemployment benefit is $790, the country's second-highest amount, which "does make us a more attractive target overall," LeVine said.
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