WASHINGTON—Generous unemployment benefits put in place by the CARES Act and subsequent relief packages to respond to pandemic-related joblessness have become an easy target for identity thieves and other criminals. Most states have been hit by fraud committed on a vast scale, mainly by international organized crime rings.
In March, the Labor Department inspector general’s office estimated that more than $63 billion in unemployment benefits had been paid out improperly through fraud or errors since the beginning of the pandemic.
