31 Republicans request IG investigate billions in possible COVID-19-related fraud
As much as $400 billion in unemployment benefits may have stolen by fraudsters, according to identity solutions website ID.me
Pandemic unemployment fraud may be up to $400B
'The Hill' columnist Kristin Tate on pandemic benefits. and YouTuber Matt Kohrs on Reddit investors growing wary of hedge fund posers in forum.
More than 30 Republicans have sent a letter to the Department of Labor's Office of the Inspector General requesting an investigation into coronavirus-related unemployment fraud.
"The Department of Labor must be thoroughly audited. We must determine the total amount of money that has been fraudulently distributed throughout the last two years," Rep. Doug Lamborn of Colorado said in a Thursday statement. "I am deeply concerned that American taxpayer dollars have even gone to overseas foreign nationals posing as American citizens."
The Department of Labor Inspector General estimates that improper or fraudulent unemployment benefits paid since March 2020 during the pandemic will be more than 10% of the $896 billion in benefits distributed.
Lamborn and Republican Rep. Michelle Steel of California led the effort calling on Acting Inspector General Larry Turner to conduct an audit aimed at determining the level of fraud.
Unionized hospitality workers wait in line in a basement garage to apply for unemployment benefits at the Hospitality Training Academy in Los Angeles. (AP Photo/Marcio Jose Sanchez, File)
ID.me, an online identity solutions website, estimates as much as $400 billion in unemployment benefit payments may have been fraudulent, as Axios first reported. That amounts to about 50% of unemployment money, according to the company.
"It is past time that the Department of Labor determine the total amount of taxpayer dollars that have been wasted," Lamborn said. "I am grateful for the support of my colleague Rep. Steel on this crucial issue and look forward to the Department’s prompt reply."
Experts believe foreign actors are behind the majority of benefit fraud during the pandemic.
Criminals are able to access the money by stealing personal information and using it to impersonate claimants or buying it on the dark web. The groups also use an army of internet thieves to submit fraudulent claims, Haywood Talcove, the CEO of LexisNexis Risk Solution, previously told Fox Business.
States administering the aid may be prepared to combat fraud from individuals who are trying to double-dip or cash in on benefits they don't need, but they can't always catch international criminals.
Fox Business' Megan Henney and Hillary Vaughn contributed to this report.