Government payment systems are riddled with fraud, in everything from Medicare fraud, Medicaid fraud, Earned Income Tax fraud, food stamp fraud, Social Security fraud…
And most recently, ‘unemployment insurance fraud,’ and ‘income tax refund fraud’…
The good news is that there is a highly efficient way to reign in these ongoing, wide-spread fraud schemes, by massively shrinking the zones of opportunity.
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The Taxman Cometh for ID Theft Victims
January 29, 2021 / https://krebsonsecurity.com/category/tax-refund-fraud/
The unprecedented volume of unemployment insurance fraud witnessed in 2020 hasn’t abated, although news coverage of the issue has largely been pushed off the front pages by other events. But the ID theft problem is coming to the fore once again: Countless Americans will soon be receiving notices from state regulators saying they owe thousands of dollars in taxes on benefits they never received last year.
One state’s experience offers a window into the potential scope of the problem. Hackers, identity thieves and overseas criminal rings stole over $11 billion in unemployment benefits from California last year, or roughly 10 percent of all such claims the state paid out in 2020, the state’s labor secretary told reporters this week. Another 17 percent of claims — nearly $20 billion more – are suspected fraud.
California’s experience is tracked at a somewhat smaller scale in dozens of other states, where chronically underfunded and technologically outdated unemployment insurance systems were caught flat-footed by an avalanche of fraudulent claims. The scammers typically use stolen identity data to claim benefits, and then have the funds credited to an online account that they control.
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Government payment systems seem to be an open invitation for criminal fraud…:
IRS Reports $2.3 Billion in Tax Fraud in 2020
Courthouse News, Nov 16, 2020
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And now… even government IT specialists are ‘feeding’ personal data into the tax refund fraud market place:
FEMA IT Specialist Charged in ID Theft, Tax Refund Fraud Conspiracy
June 18, 2020 / krebsonsecurity.com
An information technology specialist at the Federal Emergency Management Agency (FEMA) was arrested this week on suspicion of hacking into the human resource databases of University of Pittsburgh Medical Center (UPMC) in 2014, stealing personal data on more than 65,000 UPMC employees, and selling the data on the dark web.
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The Leviticus 25 Plan participants, in receiving $90,000 (Family Account; $60,000; Medical Savings Account: $30,0000), forego unemployment insurance benefits for a period of five years (unless they wish to purchase their own private unemployment insurance plan), thereby eliminating massive amounts of fraud, and billions of dollars in cost to state and federal government agencies.
Participants also agree, as part of the plan, to forego income tax refunds for five years, thereby eliminating between 80-100 million refunds. And that will eliminate the large majority of refund fraud.
The Leviticus 25 Plan solves a lot of America’s problems.
The Leviticus 25 Plan is a dynamic economic initiative providing direct liquidity benefits for American families, while at the same time scaling back the role of government in managing and controlling the affairs of citizens. It is a comprehensive plan with long-term economic and social benefits for citizens and government.
The inspiration for this plan is based upon Biblical principles set forth in the Book of Leviticus, principles tendering direct economic liberties to the people.
The Leviticus 25 Plan – An Economic Acceleration Plan for America
$90,000 per U.S. citizen – Leviticus 25 Plan 2022 (3725 downloads)