PEABODY — Dozens of North Shore residents have received notices concerning unemployment claims they never filed during the past several weeks, local police say.
But those residents, whose personal information has been compromised, aren't the only victims.
The widespread fraud, believed to stem from an international identity fraud scheme, has led to delays in processing legitimate unemployment claims, state officials said last week.
"It's tragic because there are a lot of people who really need it now," said Marblehead Police Chief Robert Picariello.
As government-ordered shutdowns of businesses went into effect in March and April, companies began widespread layoffs of employees who could not work from home.
With hundreds of thousands of newly-unemployed residents whose search efforts for a new gig have been hampered by the pandemic — or who are waiting for employers to call them back to work — officials in Massachusetts and other states attempted to speed up the process, taking steps like waiving a one-week waiting period and approving applications immediately. And the federal CARES Act added a $600 a week supplement that would help with extra costs, making what ordinarily might have been a comparatively small amount far more significant.
But that rush to help may have also created opportunities for scammers, police and state officials acknowledged.
In a release last week, state officials say "large amounts of illegitimate unemployment claims" had been attempted through the state's online claims system.
"This is part of a national unemployment fraud scheme," officials said.
Picariello's department has fielded more than two dozen reports from residents, according to the department's daily logs.
Other departments are also getting reports, including almost a dozen in Peabody and almost half a dozen in Beverly, police say.
While there isn't much the local departments can do in terms of identifying the culprits, they are collecting information that they can provide to state and federal investigators. For that reason, they are encouraging anyone who either gets a letter or learns in some other way about an unemployment application in their name to contact their local police department.
Picariello said his department is also giving out information on other resources available to victims of identity fraud, including how to check credit reports and updating passwords on accounts.
Beverly Police spokesman Patrolman Michael Boccuzzi said he and other officers have been getting calls as well. One woman he spoke to after she received a letter said she called the unemployment department and learned the claim ended up not being put in.
Capt. Dennis Bonaiuto said his department is taking reports and referring people to the state unemployment division.
The Department of Unemployment Assistance announced last week that it believes the information came from earlier data breaches.
There have been some significant breaches in recent years, including one in 2017 at one of the major credit bureaus that affected millions of Americans.
The situation has forced the state agency to implement additional verification procedures — such as sending in scanned license photos or requesting other information — that will delay the process.
“While the program integrity measures we are taking will unfortunately mean that some claimants will experience temporary delays in payment, we believe these steps are necessary to respond to this unemployment scam," said Labor and Workforce Development Secretary Rosalin Acosta in a press release. "We are working rapidly to respond to this scheme and urge individuals who may have had a false unemployment claim filed in their name to contact the department.”
Those who believe their information has been used to file a false claim can call the DUA customer service department at 877-626-6800 or report it online at mass.gov/unemployment-fraud.
Courts reporter Julie Manganis can be reached at 978-338-2521, by email at jmanganis@salemnews.com or on Twitter at @SNJulieManganis.
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