There’s a common misconception that fraudsters must employ sophisticated tactics to be successful. Sophisticated fraud both is on the rise and can be wildly successful. But fraudsters don’t have to depend on the latest, most complicated approaches to make a profit.
Take COVID-19 unemployment benefits fraud as one example. The Labor Department’s Inspector General recently announced that fraudsters may have stolen $45.6 billion dollars from the relief program. It wasn’t only sophisticated fraudsters using the latest technology and resources to bypass security software. Many of these funds were stolen by individuals submitting fraudulent applications simply by using other Americans’ identities. The ramifications of this fraud aren’t limited to the loss of tax dollars to criminals, either.