Unfortunately, with the rise in unemployment insurance claims associated with COVID-19, there has also been a rise in fraudulent claims and other instances of fraud.
2020 has resulted in unemployment for numerous people. In response, the federal government has worked to extend unemployment benefits and increase payments to help people get by. Sadly, this has caused the criminal element to turn their efforts toward unemployment insurance fraud. As a result, we have witnessed growth in the number of fraudulent unemployment claims
While we can not be certain where the data come these bad actors are using to file fraudulent claims comes from, it is likely the data was obtained as a result of the numerous data breaches that have occurred in the last 3-5 years. Once data is stolen from a company, it is packed up and then sold on the “Dark Web” to as many customers as possible before losing its value. The threat actor then takes that purchased data and enriches with other data they’ve bought to fill in any missing information necessary to file an unemployment claim. Because of this black market of data, this is a growing problem throughout the state and the nation as a whole.
If you become aware of a fraudulent Colorado unemployment claim filed in your name, there are steps you should follow to report the incident and steps you can take to protect your identity and your credit.
You should also consider freezing your credit
Credit Bureau Contact Info: Equifax: 1-800-525-6285 Experian: 1-888-397-3742 TransUnion: 1-800-680-7289