More alarming numbers about the huge scale of pandemic fraud

The latest U.S. Dept. of Labor estimates say fraudulent unemployment insurance claims during the pandemic reached $45.6 billion. AP Photos

The latest estimates on unemployment insurance fraud committed during the height of the pandemic are eye-popping and also maddening: a whopping $45.6 billion.That figure, a Sept. 21 memo from the Office of the Inspector General for the U.S. Department of Labor points out, is far higher than the previous estimate of $16 billion. Those fraudulent unemployment insurance claims were filed when the federal government began sending out trillions in pandemic aid meant to help those laid off due to COVID-19."Hundreds of billions in pandemic funds attracted fraudsters seeking to exploit the UI program," Inspector General Larry D. Turner said in a statement, "resulting in historic levels of fraud and other improper payments."Clearly, $45.6 billion in fraud on top of earlier estimates of more billions in fraud involving pandemic loans and other assistance goes beyond being a massive hit to government coffers, as in taxpayers.

Editorial

Editorial

It's also a slap in the face to honest Americans who, should another pandemic or similar global crisis hit, will rightly expect Congress to quickly provide help to get the nation through the emergency.We can hear the protests already, coming from lawmakers who will seize any opportunity to vote against a big aid package: "You saw what happened last time ..." They'll have a point, too, which is why enhanced oversight to prevent fraud is a must, as this editorial board pointed out last month.So far, more than 1,000 people have been charged with crimes as a result of Labor Dept. investigations into the fraud. More than 400 people have been convicted.In all, more than 190,000 such investigations have been opened. As the investigations continue, other swindlers must be held accountable, too.That will take time. In August, the government's chief pandemic prosecutor warned it will take "years and years" to pursue all of the grifters and con artists who committed pandemic fraud. Plenty of work still to come for government prosecutors. A lure for criminalsWhen the pandemic put millions out of work through no fault of their own, Congress took action to help the newly unemployed, and the economy overall, stay afloat. The 2020 CARES (Coronavirus Aid, Relief and Economic Security) Act provided funding so that states could extend unemployment benefits to workers who typically would not be eligible like independent contractors and pay benefits for a longer period of time. An additional $600 was added to weekly benefits.Within months, more than 57 million people filed unemployment claims. But states Illinois among them struggled to handle the swift rollout of a huge aid program. So criminals, lured by visions of extra cash and looser eligibility rules, swept in.Between March 2020 and April 2022, scammers committed fraud in a variety of ways that fell through the oversight cracks: by filing claims in more than one state; using the Social Security numbers of dead people and of federal prison inmates; and using "suspicious" email accounts.We hope the $45.6 billion doesn't turn out again to be an undercount.Here in Illinois, a June audit found flaws in the state's administration of two federal pandemic unemployment programs. Since then, to its credit, the Illinois Department of Employment Security has made important changes to tighten oversight, as the Sun-Times' Stephanie Zimmermann has reported.The audit found the state lacked adequate information technology controls and had failed to maintain accurate and complete data on people filing claims.The agency has now switched to new login software that includes "identity proofing," multi-factor authentication and fraud analytics; conducts additional data analysis with other software; and is working with the National Association of State Workforce Agencies to flag suspicious claim filers operating in more than one state.We're not experts, but these steps strike us as headed in the right direction. If tighter controls are needed, we're all for those, too.It's too late to prevent the massive fraud that's already occurred, though officials should do what they can to recoup as much money as possible.It's not too early to stop it from happening next time.The Sun-Times welcomes letters to the editor and op-eds. See our guidelines.