Pandemic Unemployment Fraud May Shift, Bring More Business Costs

Employers should increase their vigilance against unemployment insurance fraud as a pandemic-era program for independent contractors—a ripe target for sophisticated swindlers—expires next month, experts on jobless benefits said.

Domestic and international cybercriminals who’ve used stolen identities to commit fraud on a mass scale may shift their focus to traditional unemployment insurance when the Pandemic Unemployment Assistance program ends Sept. 6, those experts said. The program provides benefits to gig economy workers and others who don’t qualify for regular unemployment benefits.

“Fraud rings look for easy targets that produce revenue with minimal risk,” said Douglas Holmes, president of UWC - ...