Lorain County residents affected by unemployment fraud; state of Ohio seeks solution

EATON TWP. — Dick and Gail McConnell knew something was wrong when they received a 1099-G tax form in the mail showing that Gail had claimed more than $11,000 in unemployment benefits. Both are retired and neither had needed any type of unemployment benefits in decades. The Eaton Township residents are among a growing number of Lorain County and Ohio residents who are realizing they are victims of identity fraud related to unemployment scams. Dick McConnell, 76, said he and Gail, 72, are always cautious with their mail, and they figure the most likely way Gail's personal information could have gotten out was through tax or medical documents. "We're really racking our brain trying to figure out how they did it, and our greatest concern is that they're going to do it again," he said. The couple reached the Ohio Department of Job and Family Services by phone and was assured their complaint was being investigated, but so far, the McConnells have not heard back. Stories like the McConnell's are part of the reason why the state says it is forming a public-private partnership to work on improvements to the unemployment system. "These experts will provide recommendations and solutions to improve the call center, claims process, and fraud detection efforts in the state unemployment system," said Ohio Gov. Mike DeWine on Thursday as he announced the partnership. The goal of the 16-or-so private-sector experts in the partnership will be to make improvements quickly while also keeping an eye on the long-term best processes for the state unemployment system through the Ohio Department of Job and Family Services, DeWine said. Extra attention to the system could be needed as local police agencies have been hearing from more and more residents who have been victimized by scammers. Among the many local victims, according to police reports: a 45-year-old Avon Lake woman who told officers she'd been having identity fraud issues since November, an Amherst man whose employer informed him of the fraud, and an 84-year-old Wellington man who has been retired since 1997. In Avon, police say they are seeing numerous residents coming to the station with 1099-G tax forms exposing fraudulent unemployment claims. The forms are sent to recipients of benefits so they can report that income when they file their annual taxes. "Since Jan. 1, we've had 13 reports, and almost every one of them was because they got a 1099 in the mail," said Public Information Officer James Drozdowski. He said police have been filing reports on the fraud complaints and advising the residents to reach out to the state. Why the sudden increase in this type of fraud? In addition to traditional unemployment fraud schemes, scammers have seized on the Pandemic Unemployment Assistance program, which expanded federal unemployment benefits earlier in the COVID-19 pandemic. The program was designed to make it easier for more Americans in need to receive assistance but also left some doors open for scammers. One scammer admitted to paying in cryptocurrency to access a database of hacked information, which he uses to link names to the victims' dates of birth and Social Security numbers, according to a report from USA Today. Many victims of the fraud do not realize their identity was stolen until they receive a 1099-G form in the mail indicating they received unemployment benefits. The Ohio Department of Jobs and Family Services recommends that anyone who thinks they may be a victim of unemployment fraud complete an online form to report the fraud. The form can be found in a link on the department's website: unemploymenthelp.ohio.gov/IdentityTheft. A fraud hotline is also available by phone at (833) 658-0394. The line is staffed from 8 a.m. until 5 p.m., Mondays to Fridays. After receiving fraud complaints, the department processes the reports, conducts an investigation and issues a correction to the Internal Revenue Service if necessary, according to the Department of Jobs and Family Services website. Contact Dylan Reynolds at (440) 329-7123 or dreynolds@chroniclet.com. Follow him on Twitter @drey1357.