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Allstate Reveals 17,000% Unemployment Fraud Increase

 Friday, May 7, 2021

 Insurance Business

Identity theft specifically linked to unemployment jumped to astronomical levels last year during the COVID-19 pandemic, according to data from Allstate Identity Protection (AIP),Allstate Insurance’s identity theft insurance business.

The report found that unemployment fraud in 2020 increased by more than 17,000%.

Tax fraud also increased last year, by 258% more than 2019. AIP has warned that both are likely to continue rising, with unemployment fraud cases expected to more than triple in 2021.

Prior to the COVID-19 pandemic, unemployment fraud accounted for only a small fraction of all identity theft cases; in AIP’s case, it only accounted for less than 0.1% of the fraud cases it handles.

However, it now represents about 70% of the fraud cases resolved by AIP.
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