Unemployment insurance is one of the main aids that have allowed millions of Americans to have a little money to be able to pay basic expenses such as food. Although this money has been of great help to a large section of the population, it has also been of great help to criminals.
According to the Axios portal, approximately half of the unemployment aid may have been stolen by crime. In economic terms, what is stolen represents $400,000 million dollars. The study explains that this has been possible through fraud.
The way in which frauds occur has to do with identity theft, those who comment on it pose as applicants for the supports, a very common practice. There are also those who have potential beneficiaries provide them with their personal information and they take advantage of it at their convenience.
There are even those who have more sophisticated methods to carry out fraud, they do it by means of debit cards, a situation that allows them to withdraw money from ATMs quickly. This situation gives them the possibility of transferring the obtained abroad, sometimes it is done by means of bitcoin, because this way the money can not be tracked in a simple way.
In this sense, firms such as ID.me, an expert in preventing fraud, through its CEO, Blake Hall, explained in the Axios report that the United States may have lost up to 50% of all unemployment assistance money in thefts. This is a severe blow to the federal government’s public finances.
ID.me explained that most likely most of the money ended up in the hands of foreign criminal groups, which makes the problem a national security issue because of the complexity of how the money could have been moved to other latitudes.
Other expert firms such as LexisNexis Risk Solutions ruled something similar that ID.me, noting that at least 70% of the stolen money ended up in criminal groups in countries of China, Nigeria, Russia, among other nations. Experts agree that the rest of the money is owned by criminal groups in the country.
According to the report, experts point out that the states most affected by this situation are those that lack fraud detection mechanisms. They say that there are 25 states in the country in this situation, for security reasons it is not alluded to in the report which are the most affected entities in the nation.
Due to the positions of some states in the sense that federal support for unemployment will be eliminated, due to the economic recovery, it is possible that frauds will fall considerably, however as long as state governments provide this type of support, the possibility that aid can be stolen will remain latent.
Photo Source: AFP