Tax filers face ‘enormous’ risk for identity theft as July 15th deadline looms
4 min read
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When it comes to online scams, nothing is sacred. Malicious actors will take advantage of the elderly, target people trying to make positive change in the world, and even capitalize on others’ misfortune. It seems like a new scheme is hatched every day. The latest on our radar is the massive unemployment check fraud committed in Massachusetts following an uptick in pandemic-related job loss.
The criminal activity was first detected by the Massachusetts unemployment systems as part of a nationwide scam back in May, according to Massachusetts Live. As of July, the count is 58,000 fraudulent claims and a total of $158 million in nearly-stolen money, according to an investigation conducted by Ernst & Young.
Why should U.S. taxpayers be horrified by unemployment fraud?
This recent bust should serve as a rude awakening to citizens across the U.S., because in order for online fraudsters to file false unemployment claims, they need access to taxpayers’ most sensitive information. In other words, hackers steal your identity, then they file false claims using your name and social security number or tax I.D.
If you’ve been a victim, you find out the hard way. “People will apply for unemployment and find out that someone has already applied in their name and is receiving unemployment from that,” said cybersecurity expert and Cyberscout founder Adam Levin to Yahoo Life. As the real person filing the real claim, you might be denied—and now you have to cut through red tape to receive your legitimate payments.
Levin added that it’s no coincidence the phenomenon coincides with the extended 2020 tax filing deadline. “There is always an enormous amount of identity theft related to tax season,” he said. “And keep in mind that if you have enough information to file a false unemployment claim or a fake tax return, you have enough information to commit full-on identity theft against a victim.”
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