Unemployment fraud now ranks as the 4th biggest federal COVID expenditure.
A group of scammers in New York City allegedly ripped off millions from the state’s super-charged pandemic welfare system. They were busted after (rather foolishly) posting pictures of themselves with massive money stacks on social media and now face prosecution.
“A group of young men is accused of ripping off $2 million in COVID-19 relief funds by stealing personal information from people in the assistance program, funneling their money to personal bank accounts, and withdrawing the cash at banks in Brooklyn and Queens,” Fox Business reports. “The scams began last June and continued through April.”
The scammers’ target was the state’s unemployment benefits system. During the pandemic, the government greatly increased benefit payouts and hastily expanded eligibility to new categories of workers. In its rush to get taxpayer money out the door, the government created a target-rich system flush with cash and light on verification.
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