Fraudulent unemployment insurance claims were the top single source of complaints to the Cuyahoga County Department of Consumer Affairs in Q1-21. Early on, residents usually learned their Social Security numbers had been misused when they received an unemployment account password from the state. Some only learned of the scam when they received tax forms indicating they’d been paid benefits they never applied for or received. Ohio was just one state affected by a fraud that the U.S. Department of Labor’s Inspector General estimated resulted in $5.4 billion in fraudulent payouts nationwide. Initially, victims faced numerous hurdles reporting the scam. The Scam Squad task force worked with the state to make it easier for victims to report fraud and to share information about new versions of the scam. Consumer Affairs posted tips for businesses and individuals, and investigators provided one-on-one assistance to residents who encountered hurdles in reporting the scam or recovering from ID theft.

By April, unemployment scam reports tapered off, but scammers continued to take advantage of people whose finances were strained during the pandemic. When residents reported scam emails offering them prizes if they clicked on a link to share their views about the Coronavirus vaccine, Consumer Affairs worked with the County Board of Health to warn residents of the new scam. Consumer Affairs also alerted the Federal Trade Commission, a Scam Squad partner, which issued a national warning.

In May, Scam Squad launched a public education effort to disrupt a growing number of scams that rely on bitcoin payments. E-currency payments (such as bitcoin) are instantaneous and are not reversible, making them especially problematic for scam victims.  The FBI led the Scam Squad project, creating brightly colored signs to warn people about a growing number of common scams, such as utility shutoff or arrest scams, that request bitcoin. Stores that house bitcoin ATMS received free signs from Scam Squad and a letter requesting they post the signs on bitcoin ATMs in their stores. The signs are intended to warn people caught up in scams that utilities and government agencies never request bitcoin payments. Scam Squad, organized by the Department of Consumer Affairs, unites nonprofits, social service agencies and law enforcement at all levels of government in the fight against fraud. Cuyahoga County stores that would like bitcoin warning signs are encouraged to contact Scam Squad at 216-443-SCAM (7226).

Residents can report any scam to Consumer Affairs at 216-443-SCAM (7226) or online at consumeraffairs.cuyahogacounty.us.