Washington finds it paid out hundreds of millions in fraudulent unemployment benefits

An unemployment application.
(Image credit: Olivier Douliery/AFP via Getty Images)

"Sophisticated criminals" have used stolen information to fraudulently receive hundreds of millions of dollars in unemployment benefits from the state of Washington.

Suzi LeVine, commissioner of Washington's Employment Security Department, revealed on Thursday that imposters have used the stolen identities of tens of thousands of state residents to apply for benefits. LeVine said an investigation is underway, with the state and federal law enforcement working to try to get the money back. She was unable to give any specific numbers, as this is an active case. "These are very sophisticated criminals who have pretty robust collections of information on people, and they are activating and monetizing that information," she said.

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LeVine said countermeasures have been taken that "prevented hundreds of millions of additional dollars from going out to criminals and have prevented thousands of fraudulent claims being filed." Now, applicants who set up direct deposit will have to wait longer for their payments, as the state is taking extra time to verify claims.

Since businesses first began to close in March because of the coronavirus, more than 1.1 million people in Washington have filed for unemployment benefits, AP reports. Washington's maximum weekly unemployment benefit is $790, the country's second-highest amount, which "does make us a more attractive target overall," LeVine said.

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Catherine Garcia, The Week US

Catherine Garcia has worked as a senior writer at The Week since 2014. Her writing and reporting have appeared in Entertainment Weekly, The New York Times, Wirecutter, NBC News and "The Book of Jezebel," among others. She's a graduate of the University of Redlands and the Columbia University Graduate School of Journalism.