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Massachusetts again targeted by thieves trying to steal unemployment benefits – The Boston Globe

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Massachusetts again targeted by thieves trying to steal unemployment benefits – The Boston Globe


Such identity theft previously hit Massachusetts and other states at the height of the COVID-19 pandemic three years ago.

The Massachusetts agency says it is examining claims carefully and, of the most recent batch of applications, approved only 12 percent after an initial review, rejected 25 percent, and withheld approval of the remaining 63 percent pending additional identification verification.

One explanation for why Massachusetts suddenly was targeted is because it has among the most generous state unemployment benefits.

Fraud emerged as a major problem across the country during the height of the pandemic, when states were inundated with claims for unemployment benefits at the same time tens of thousands of legitimate applicants who had lost their jobs were filing for help. In 2020, the administration of then-governor Charlie Baker said it recovered more than $242 million in fraudulently issued unemployment benefits.

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“There is a tremendous amount of bot-based fraud going on,” Baker said at the time, referring to autonomous software programs that are able to interact online with systems and users.

The administration blamed an international criminal fraud ring targeting the state DUA. The scam prompted the Massachusetts agency to interrupt weekly payments to some claimants and to block the initial filings of others as it investigated. As a result, the agency implemented time-consuming measures to verify users’ identities. That left many legitimate applicants frustrated at long delays.

Most unemployment benefits fraud cases involve stolen identities. Scammers commonly obtain Social Security numbers and other personal information of individuals after data breaches of large companies or government agencies. The scammers use that information to file for employment under stolen identities and attempt to divert the benefits to themselves.

A recent report from the Government Accountability Office, the nonpartisan research arm for Congress, estimated that states in fiscal year 2022 made almost $19 billion in improper payments, or about 22 percent of all payments.

“GAO found evidence of substantial levels of fraud and potential fraud in unemployment insurance during the pandemic,” the report says.

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The volume of new unemployment claims is closely watched by economists and others because it is seen as an indicator that employers are reining in spending by reducing their workforces. And a surge in applications is usually interpreted as a sign that layoffs are accelerating.

Between mid-April and the first week of May, the number of new claims in Massachusetts more than doubled.

Some analysts looking at the national unemployment claims numbers for the week ending May 6 noted that new claims were the highest since November 2021, up 22,000, including 6,420 new ones from Massachusetts. That led to speculation among economists that the figures might influence the Federal Reserve to pause its rapid pace of interest rate increases, which were meant to cool the economy and tamp down inflation.

But now many analysts who once saw a cooling economy are instead acknowledging the elevated numbers were a blip, underscored by the newest report that came out Thursday. The number of new applications for the week ending May 13 fell by 22,000 to 242,000 from 264,000 the week before, mainly due to a drop of 14,000 claims from Massachusetts

The DUA said the recent surge in claims two weeks ago was not indicative of more unemployment.

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“The increase seen in initial weekly unemployment claims is not reflective of individuals filing for unemployment insurance but rather fraudulent attempts on the system,” according to a DUA statement.

The DUA “continues its efforts to prevent, detect, and capture these fraudulent claim attempts,” the statement said.

The US Department of Labor, which oversees most payments to jobless workers, “has taken some recent steps to address fraud risks,” the GAO said, by, for example, providing state agencies like the DUA with “fraud-related guidance, integrity tools, and grant funding.”

The Labor Department in April announced $200 million in grants available to state unemployment agencies this summer to help them “build systems to prevent and detect future fraud more effectively.” Those state systems “were targeted by organized crime rings that quickly exploited vulnerable, chronically underfunded systems to steal pandemic-related assistance fraudulently,” the agency added.

A representative of the Healey administration said the DUA is “actively pursuing” a grant from the Department of Labor.

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Material from wires services was used in this report.


Got a problem? Send your consumer issue to sean.murphy@globe.com. Follow him on Twitter @spmurphyboston.





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Massachusetts

What Shrewsbury, Westborough May Get In MA 2025 Budget

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What Shrewsbury, Westborough May Get In MA 2025 Budget


SHREWSBURY, MA — State House lawmakers last week passed their version of the fiscal 2025 budget, with local lawmakers including plenty of funding for local projects in the $58 billion spending plan.

State reps. Hannah Kane, R-Shrewsbury, and Kate Donaghue, D-Westborough, said they included money in the budget for the following local initiatives:

  • $50,000 for Shrewsbury Youth and Family Services
  • $10,000 for accessibility improvements to the bathrooms at Dean Park (Shrewsbury)
  • $10,000 for improvements to the gazebo at the Shrewsbury Town Common
  • $27,000 for radios for Westborough ambulances

The fiscal 2025 budget also includes an increase in Chapter 70 funding, which is the state’s contribution to each school district. Westborough could get about $12.3 million compared to $11.9 million in fiscal 2024, and Shrewsbury could get about $21.5 million compared to about $20.7 million in fiscal 2024.

The budget also includes an increase in unrestricted aid for cities and towns. That type of cash can be used for a variety of municipal services, ranging from libraries to the fire department. Westborough may get about $1.4 million in unrestricted aid ($1.39 million in fiscal 2024), and Shrewsbury may get $3.36 million ($3.22 million in fiscal 2024).

The House budget proposal, however, is subject to change. The state Senate will next take a crack at the budget with possible changes before it goes to Gov. Maura Healey for a signature. Healey could also veto portions of the budget. Last year, Healey vetoed $272 million in spending priorities.

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Massachusetts Uncovered This Much in Public Benefits Fraud

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Massachusetts Uncovered This Much in Public Benefits Fraud


Times are tough these days in Massachusetts and elsewhere. Every penny counts, and those who spend taxpayer money must be sure the funds are spent responsibly.

It’s only fair to those who foot the bill.

A recent investigation by Massachusetts State Auditor Diana DiZoglio’s office has turned up nearly $3 million in public benefits fraud, money given to people who did not deserve it.

Some might argue that $3 million is a pittance compared to the totality of the state budget for Fiscal Year 2024 (FY24), estimated at $56 billion, but again, it is taxpayer money and should be spent accordingly.

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The State Auditor’s Bureau of Special Investigations (BSI) regularly audits spending for public benefits programs and usually uncovers some fraud. The most recent investigation was for October through December 2023, the second quarter of FY24.  

DiZoglio’s probe uncovered fraud in 96 of the 1,451 cases it reviewed. 

Massachusetts Uncovered This Much Public Benefits Fraud

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State House News Service says the investigation found $2,083,270.85 in MassHealth fraud; $692,851.50 in fraud in the Supplemental Nutrition Assistance Program (SNAP); $74,195.05 in the Transitional Aid to Families with Dependent Children program; $7,909.33 in fraud connected to the Emergency Aid to the Elderly, Disabled, and Children program; and $796.95 in fraud linked to the Personal Care Attendant Program. 

DiZoglio’s office said the investigation recovered $228,185.97 through restitution settlements.

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A statement accompanying the Bureau’s report states, “As a result of BSI’s investigations, public assistance fraud cases are referred to agencies for administrative action, fraudulent overpayments are recovered through civil agreements, individuals are disqualified from programs for specified periods of time, and cases are prosecuted in state and federal courts.”

Massachusetts’ Highest Paying Bachelor Degrees

Ready to chose a college major? Want to try and score the biggest paycheck possible after school is over? Then these are the fields you may want to study.

The United States Census Bureau has ranked bachelor degrees by median earnings and these fields came out on top.

Gallery Credit: Nancy Hall

12 Things Invented in the Commonwealth of Massachusetts

A lot of life-changing things have come out of Massachusetts. Here are a few of the Bay State inventions still relevant to our lives today.

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Gallery Credit: Gazelle





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Massachusetts Democrat demands universities crack down on anti-Israel protests: 'Shut them down'

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Massachusetts Democrat demands universities crack down on anti-Israel protests: 'Shut them down'


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Rep. Seth Moulton, D-Mass., called for university leaders to shut down anti-Israel protests on college campuses, saying they had gone too far and threatened Jewish students’ safety.

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The Democrat told NBC10 Boston that school leaders had a “responsibility” to shut down the protests for disrupting classes and making many Jewish students feel unsafe on campus.

“We live in a country that values freedom of speech,” Moulton told the local outlet. “But these protests in many cases have threatened the safety of Jewish students. They’ve completely disrupted the operation of universities, preventing all the other kids from being able to go to school. So, the universities have a right, and I would argue in this case, even a responsibility, to shut them down.”

“I was delighted to just see Harvard turn on the sprinklers the other day,” he added, speaking of his alma mater.

HOUSE DEMOCRATS TELL COLUMBIA UNIVERSITY ADMIN, ‘TIME FOR NEGOTIATION IS OVER’

In an interview, Rep. Seth Moulton, D-Mass., called for universities to shut down anti-Israel protests on college campuses. (GREG NASH/POOL/AFP via Getty Images)

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Moulton argued there needed to be a balance between protecting protesters’ First Amendment rights and protecting the safety of Jewish students.

He said protesters “threatening other students” are a problem, but added that universities “have a right to take action.”

Moulton joins other Democrats who’ve begun pressuring universities to squash the disruptive protests.

Nearly two dozen House Democrats wrote a letter Monday urging Columbia University leadership to disband “the unauthorized and impermissible encampment of anti-Israel, anti-Jewish activists on campus.”

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Columbia University anti-Israel protest

Columbia University, where students have set up what is being referred to as a Gaza Solidarity Encampment, is shown in New York on April 24, 2024. (Getty Images)

Later that morning, Columbia threatened to suspend students or issue other disciplinary measures if they didn’t clear their belongings from the encampments by the afternoon.

“If you do not identify yourself upon leaving and sign the form now, you will not be eligible to sign and complete the semester in good standing. If you do not leave by 2 p.m., you will be suspended pending further investigation,” it warned.

However, some progressive members of Congress visited Columbia on Friday in support of anti-Israel protesters.

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