‘So Hard To Prove You Exist’: Flawed Fraud Protections Deny Unemployment To Millions

Jennifer Pahlka co-chaired a strike team that discovered that outdated fraud detection systems were to blame for delaying benefits for millions of people. As a result, a new modern ID verification system has just been launched to fix the problem.

Clementine Hecker

Organized crime rings have targeted state unemployment systems during the pandemic, seeking to steal money through fraudulent claims. And that’s a problem. But arguably a bigger problem is that some of the systems in place to prevent fraud have hurt millions of innocent people, keeping the benefits they deserve in limbo.

They’re people like Sevy Guasch, who lost his job as a food and beverage manager at a Marriott hotel near San Jose, Calif. In March, he applied for unemployment benefits. He went online, entered his information, and waited. And waited.

He couldn’t get through on the phone. After more than a month, Guasch was told to mail in more proof of his identity.