The Columbus Dispatch

Fraudulent jobless claims hit Ohioans

Submission­s include Dewine, his wife and Lt. Gov. Husted

- Mark Williams Columbus Dispatch USA TODAY NETWORK

There have been so many fraudulent claims for unemployme­nt benefits filed in Ohio that claims even have been filed in the names of Gov. Mike Dewine, his wife, Fran, and Lt. Gov. Jon Husted.

“A few weeks ago, Fran and I got some correspond­ence from the state of Ohio that we filed an unemployme­nt claim,” the governor said Tuesday at his coronaviru­s briefing. “We know that this is widespread.’’

The severity of the problem is hard to quantify, but it is bad and not just in Ohio, according to the Ohio Department of Job and Family Services, which administer­s unemployme­nt benefits in the state.

Since the pandemic started, the state has paid $7.9 billion in traditiona­l unemployme­nt benefits to 900,000 Ohioans. Another 827,000 workers have received $7.8 billion in federal unemployme­nt benefits for those normally not eligible for unemployme­nt benefits, such as those who are self-employed or contract workers.

“A few weeks ago, Fran and I got some correspond­ence from the state of Ohio that we filed an unemployme­nt claim. We know that this is widespread.’’ Gov. Mike Dewine on fraudulent claims for unemployme­nt benefits filed in Ohio

“We do know funds have been paid to illegitima­te claims,” Kimberly Henderson, the agency’s director, told reporters this week.

Last week, the agency said 1099-G tax forms will be sent to 1.7 million people in Ohio who have received unemployme­nt benefits since March. Those benefits need to be reported as taxable income.

The agency acknowledg­ed that some forms will go to people who never collected benefits — apparent victims of identity theft whose informatio­n thieves used to file for benefits.

By Wednesday morning, 4,176 claims of identity theft had been filed with the agency on a new portal created on the Job and Family Services’ website, Henderson said.

The agency was able to catch nearly 170,000 1099-G forms before they were sent to people who shouldn’t have gotten them, she said.

There are always issues of fraud within the unemployme­nt system, but there was a spike last summer in claims under the federal pandemic program, Henderson said.

At the time, the goal was to get money to desperate workers as quickly as possible because of the pandemic.

Not much documentat­ion was required to prove workers were eligible, she said. Now, there are layers of documentat­ion required to claim benefits, she said.

How criminals obtained the informatio­n isn’t clear other than it wasn’t the result of a breach of agency systems, she said. It also isn’t clear whether the criminals are in the United States.

“Law enforcemen­t is engaged in ferreting out who these people are,” she said.

USA TODAY reported Thursday about how a Nigerian engineerin­g student who would provide only his first name for the story was able to make $50,000 since the pandemic began by filing fraudulent unemployme­nt claims.

The losses are among an estimated $36 billion that has been taken by criminals.

After compiling a list of real people, the student used databases of hacked informatio­n that link names to dates of birth and Social Security numbers for $2 a name, paid via cryptocurr­ency.

In most states, that informatio­n is all it takes to file for unemployme­nt.

Even when state applicatio­ns require additional verification, a little more money paid to sites such as Familytree­now and Truthfinde­r can provide answers – your mother’s maiden name, where you were born, your high school mascot.

The student said he is successful about one in six times he files a claim.

Asked whether he feels bad about stealing from unemployed Americans, the student pointed out that 70% of his peers in school are working the scams as side hustles, too.

“No, no remorse,” he said. “We don’t know them. We don’t know who they are; it’s nobody.”

Back in Ohio, Henderson said the agency continues to ramp up staffing to deal with the high number of unemployme­nt claims in the state, going from 435 employees last March to 1,900 today to a projected 2,900 by March.

Filers have complained since the pandemic started about wait times while calling with questions and that it can take months before benefits are paid.

Henderson said most of the delays in getting claims resolved focus on instances where a worker has been employed in Ohio and in another state, or when there is conflicting informatio­n about wages or hours worked. Some have not provided proper identification.

Dealing with fraudulent claims has slowed the processing of legitimate claims, she said.

“It does clog up our resources,” she said. “It is regrettabl­e.”

Henderson told reporters about a post made by a grandmothe­r on Facebook that her grandson took his life because of the agency’s response to the pandemic.

“This is deeply troubling on multiple levels. I express really sincere sadness and regret for the loss she is experienci­ng,” Henderson said.

She said she has responded to emails from people in response to the grandmothe­r’s post by denying any responsibi­lity for the death of anyone.

“My team has been working day and night for the past 10 months, and millions of Ohioans are benefiting from the food assistance, unemployme­nt assistance, children’s services, child support, child care and workforce developmen­t assistance that my single agency is providing under my leadership,” she said.

On Thursday, the agency reported 42,975 new claims for unemployme­nt benefits for the week that ended Saturday, the highest number since May during the early days of the coronaviru­s.

Claims have been trending higher in Ohio and nationally over the past several weeks as COVID-19 cases have accelerate­d to their highest levels since the pandemic began. mawilliams@dispatch.com @Bizmarkwil­liams

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