Identity Thieves Drain Unemployment Benefit Funds 496
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."
Unemployment rate? (Score:5, Interesting)
Re:Easier the other way... (Score:3, Interesting)
Re:Check for actual unemployment? (Score:5, Interesting)
Easy to catch? (Score:3, Interesting)
abuse of SSN (Score:1, Interesting)
Advise for everyone: start using fake SSNs and DOBs whenever possible... Gee!
Airtight Security (Score:3, Interesting)
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.
Right... Hacker target number one. Ah, but maybe they've thought of this.
Again FTFA:
If and when a database is created, the only caveat is that it must possess airtight security features.
Right... See, humans will be involved somewhere, and humans can be corrupted just as easily as databases (and perhaps more so). The database will have a lookup function or it's worthless. So who will get access? Only state unemployment offices? How about credit card companies (think MasterCard)? And won't banks want a piece of this, too?
But wait, there's more. What about employers? They certainly wouldn't want to hire somebody who is using a known stolen SSN. Ok, so employers get access. It wouldn't be fair if it weren't every employer, from massive multinationals to the mom-and-pop store on the corner. Every one of these organizations will have the ability to lookup information from this database.
FTFA one last time:
At the current time, this initiative isn't even being discussed in the halls of Congress
Let's just hope it stays that way.
State dependent though (Score:3, Interesting)
Re:Check for actual unemployment? (Score:4, Interesting)
I know you're trying to be sarcastic, but you're 100% correct.
Here's an interesting article [reason.com] that discusses this topic.
From that article:
Today, the whole world benefits freely from advances in health technology that are driven largely by the allure of the profitable U.S. market. If the United States joins other nations in having more socialized medicine, the current pace of technology improvements might well grind to a halt
and
If the US adopts a nationalized health care system, taxes will have to double for pay for it.
Sounds like the private system actually is "way better"...
-bs
Sometimes they do check (Score:3, Interesting)
I usually try to refuse. Once at a Sprint PCS store, the clerk went along just fine - when 111-11-1111 wasn't accepted by their system, he tried 000-00-0000 and it took it.
Another time, a different cell phone company wanted my SSN, I said "no", they said "no". I wanted the phone, so I said "fine" and gave them a slighly different number from my true number... a few minutes later, they asked if it was correct - apparently the credit check didn't go thru. Alas, in that case I had to relent.
But in general, I make no effort whatsoever to keep my consumer information records "clean".
If it is for my benefit for my information to be right, then I keep it correct. If it is only for the convenience of others, I don't care if my name is spelled wrong, my DOB is off, or my SSN is munged.
I also enjoy saying "no" whenever a retail clerk asks something simple like "may I have your zip code?". Most just shrug, but every once in a while you get one that is truly surprised, and in those instances watching their reaction is amusing.
Re:Unemployment rate? (Score:5, Interesting)
are you really that stupid???
I know of several people that desperately are looking for a job and have been for 2 years now. The fast food places will not hire them because they know that the employee will leave the second they get a real job, and other "lesser" jobs use the "overqualified" mumbojumbo. there are tens of thousands willing to fill the need, how about the moron HR and managers actually hiring these people?
My Fiancee has a pile of rejection letters, that Masters degree of hers has lost her more jobs than anything else.
I told her to start lying and tailor the resume for the position she applies for. funny how removing the masters degree from her resume increased call-backs for interviews significantly.
Many people that run out their unemployment are not in your ivory tower republican definition. I strongly suggest you get out and actually meat real people before you pile them all in the same bucket marked "useless"
Re:Software probably can solve this (Score:2, Interesting)
First, most would be smart enough to use multiple addresses. Most of the people who live in "the hood" I used to don't live at any address, they "be stayin" at an address. They will often have a dozen addresses that they can give, and therefore get mail at.
Secondly, you're misinformed about how the govt. benifits systems work. If I get Loser X to get off of unemployment, welfare, etc, I don't have the caseload needed, and risk unemployment myself!
Case in point: A friend has an older child (22) with an orphan disease. He had to get him on Medicade, since he was quickly maxing out his yearly family insurance policy (1.5 million /year).
Even though he lives at home, since he's "disabled" they insist on giving him food stamps and a $1500/ month check. Even when informed that he will always be provided for, they give it.
Here's where it gets worse: He can only have $3000 max in assest! He can't use that money to buy a house, car or anything tangible that has "value"! They told him to "Go out and buy a stereo with it"! If he save the money, they'll cut off all his benefits! That includes the insurance!
Unemployment Rate is Unaffected (Score:5, Interesting)
The unemployment rate is calculated by the Bureau of Labor Statistics based on two *surveys*, a household survey and an establishment (business) survey, with the household survey being used for the unemployment percentage, currently 5.1%. Basically, A person is considered 'unemployed' if they don't have a job *AND* they are looking for one. If they're not working but not looking, they don't count (removed from the both the numerator and denominator of the unemployed % because they're not considered part of the labor force). See here for more details
http://www.bls.gov/news.release/empsit.tn.htm [bls.gov]
Specifically, "The unemployment data derived from the household survey in no way depend upon the eligibility for or receipt of unemployment insurance benefits".
Occasionally, the news will report on new initial unemployment claims filed as another indicator of the job market, and those numbers would be affected by fraudulent claims, but that's the extent of it.
How is this even possible? (Score:3, Interesting)
100 checks, would require 100 visits to unemployment offices, there are maybe a dozen in my city, that means at least 8 people visiting. Lots of potential for someone to notice a familiar face.
I just don't see how this happens.
Bad advice but still worth a try? No one cares... (Score:3, Interesting)
I really think people don't check. Hell I have had root on hundred of boxes at big banks and ecommerce companies and according to my free credit reports none of my employers has ever asked for a credit report, at least from Experian.
Does a query like that even show up?
If an employer makes a query to one of the big three does it show up on the other two's systems?
I'm not endorsing the practice. Just be insistent and don't be an asshole (I know that's asking a lot of
Re:Check for actual unemployment? (Score:3, Interesting)
Many people make the mistake of beleiving unemployment comes from taxes they pay. This is not true, it comes from the unemployment insurance that company pays, so you are absolutely correct, if the fake company didn't pay into unemployment you cannot receive any benefits.
Also, what BaudKarma says above is true, "Having you list the information yourself is probably done to help verify your identity." We have a database of every legitimate employer you have worked for because they are required to provide that information. In most cases, every question you answer during unemployment is already known by the system, it's just being confirmed and verified.
This entire article is bogus, at least from the standpoint of my state. There is no way this type of fraud could happen. There are cases of unemployment fraud, but what this article is describing I would say is not a real issue.