‘Massive’ unemployment fraud enterprise targeting expanded benefits busted in Maryland
Thieves allegedly made fraudulent claims totaling more than $500 million
A massive unemployment insurance theft scheme, with claims totaling more than $501 million, has been discovered in Maryland, Gov. Larry Hogan announced Wednesday.
About 47,500 people were involved in what Hogan described as a massive, sophisticated and coordinated scheme, whereby criminals used stolen identities from national data breaches to try to get unemployment assistance money.
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Under the CARES Act, eligible Americans who are out of work entirely or underemployed because of reasons related to coronavirus can receive an additional $600 a week until the end of July.
Overall, more than 47,500 fraudulent claims were said to have been made.
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“The state of Maryland exposing this illegal scheme and notifying the federal authorities has helped shed light on related fraudulent criminal activities in at least a dozen other states,” Hogan said during a press conference on Wednesday.
The state’s Department of Labor was tipped off to the scheme by an unusual increase in out-of-state federal pandemic unemployment assistance claims, Hogan said.
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As of June 20, the number of people receiving unemployment benefits was nearly 19.3 million.
Studies have shown that benefits for 68 percent of workers would exceed earnings.