{"id":27192,"date":"2024-03-11T11:45:16","date_gmt":"2024-03-11T19:45:16","guid":{"rendered":"https:\/\/www.spokeo.com\/compass\/?p=27192"},"modified":"2024-02-27T11:46:18","modified_gmt":"2024-02-27T19:46:18","slug":"welfare-frauds","status":"publish","type":"post","link":"https:\/\/www.spokeo.com\/compass\/welfare-frauds\/","title":{"rendered":"The Doubt of the Benefit: Can Welfare Frauds Steal My Identity?"},"content":{"rendered":"\n

Identity theft-related fraud is a booming part of the criminal economy, accounting for about 1.4 million of the overall fraud reports<\/a> that the FTC received from consumers in 2020. Those big numbers are impressive, but the impact of identity theft doesn\u2019t really hit home until you take an up-close look at the various ways it can affect you<\/em>, personally.\u00a0 Consider, for example, the use of identity theft in Welfare fraud<\/a>.\u00a0 That might not be something you\u2019ve ever considered (\u201cI don\u2019t get benefits!\u201d), but it\u2019s a surprisingly far-reaching threat.\u00a0<\/p>\n\n\n\n

The Broader Costs of Benefits Fraud<\/h2>\n\n\n\n

When you think about the costs of identity theft, what comes to mind first?\u00a0 For some people, it might be the time and money you\u2019ll be out of pocket while you recover from a case of stolen identity<\/a>, or the stress you\u2019ll experience<\/a> during the process.\u00a0<\/p>\n\n\n\n

If you think about it a little longer, you might focus on what such fraud costs businesses and financial institutions.  Those losses have to be covered, after all, which means higher prices and higher fees for everyone.  The same holds true, only more so, when identity theft is leveraged to claim government benefits, and it\u2019s a growing issue. <\/p>\n\n\n\n

The pandemic made us all more aware of this, with news stories estimating the cost of benefits fraud at potentially hundreds of billions of dollars<\/a>.\u00a0 Admittedly, pandemic relief is a special case, and the highest estimates often come from people selling anti-fraud solutions, but that\u2019s still a lot of tax dollars going astray.\u00a0 Aside from the direct financial loss, those are billions of dollars that now can\u2019t go where they\u2019re needed.<\/p>\n\n\n\n

The Personal Costs of Benefits Fraud<\/h2>\n\n\n\n

Welfare frauds affect everyone collectively.  They can also impact you individually in a number of ways, such as the following: <\/p>\n\n\n\n

Your Taxes<\/h3>\n\n\n\n

You might be shocked to receive a 1099, for example, for benefits received under your name and Social Security number.  Alternatively, you might receive a letter from the IRS flagging your return for unreported benefits income.  You\u2019ll be able to straighten it out over time, but it will certainly raise your stress levels. <\/p>\n\n\n\n

Legal Complications<\/h3>\n\n\n\n

A more directly threatening outcome is that you yourself might become the subject of a fraud investigation.  On paper at least, you\u2019ve claimed benefits while continuing to work.  Again, an investigation should clear you eventually, but that\u2019s little comfort while it\u2019s actually happening. <\/p>\n\n\n\n

Inability to Claim in the Future<\/h3>\n\n\n\n

The most obvious hazard of an identity thief claiming benefits in your name is that you would then have trouble if you ever needed to claim benefits in your own right.  You might not think that\u2019s ever going to become an issue (\u201cI\u2019m pretty stable\u201d), but life \u2014 sadly \u2014 is just filled<\/em> with unpleasant surprises. The 2008\u20132009 recession, the lockdowns of the early pandemic, and more \u201croutine\u201d crises like a natural disaster or the collapse of a major employer have all caused financial havoc for previously-solvent people in recent years. <\/p>\n\n\n\n

Are You at Risk of Welfare Fraud? <\/h2>\n\n\n\n

Benefits fraud is just one of many ways criminals can monetize identity theft, and identity theft can happen to pretty much anyone (brazen scammers reportedly claimed pandemic benefits under the names of Ohio Governor Mike DeWine<\/a> and California Senator Dianne Feinstein<\/a>, for example). So yes, you\u2019re at risk. <\/p>\n\n\n\n

What\u2019s also concerning is that some identity thieves target especially vulnerable demographics<\/a>, including minors, the elderly and dependent adults with medical, cognitive or developmental issues.  They\u2019re ideal targets for scammers because their credit records receive little scrutiny, and they are unlikely to pay close attention to their accounts.  It\u2019s a double threat, because people in these populations may be more likely to need benefits at some point.<\/p>\n\n\n\n

In short, if you\u2019re responsible for anyone else, you need to be aware of risks to their identities as well. <\/p>\n\n\n\n

Spotting the Signs of Identity Theft<\/h2>\n\n\n\n

There are a number of common signs of identity theft<\/a> in general, and an equally well-established canon of methods for spotting them<\/a>.  Key steps include the following: <\/p>\n\n\n\n