The U.S. Labor Department told all 50 states Wednesday that they need to get serious about fighting fraud and waste in unemployment insurance, or else they won’t get more money for those programs from the federal government.
It’s the latest example of President Donald Trump’s administration scrutinizing potential theft or misuse in state programs that get funding from Washington. While the letters went to all governors, the public announcement about them focused on issues in three states where Democrats are in charge. That’s been the case for many similar announcements from the Republican administration.
“We are officially putting governors on notice,” Acting Labor Secretary Keith Sonderling said in a statement Wednesday. “The American people will no longer tolerate the blatant waste, fraud, and…
These frauds exploit emotional vulnerability and trust rather than technical weaknesses.
- Romance Scams: Scammers build long-term online relationships with victims, eventually fabricating a “crisis” (medical emergency, legal trouble, or travel costs) that requires the victim to send money.
- Pig Butchering: A hybrid scam where the criminal builds a romantic or platonic relationship to eventually “tutor” the victim in a fraudulent cryptocurrency investment.