BUT LET'S BE CLEAR.
THIS IS OUR MONEY THEY HAVE BEEN
TAKING AND WE'LL PROBABLY NEVER
GET MOST OF IT BACK.
IN PENNSYLVANIA A HORRIFIC CASE
OF IDENTITY THEFT CAUGHT ON
CAMERA IN A RESTROOM.
PROSECUTORS SAY A CARETAKER FOR
INTELLECTUALLY DISABLED PEOPLE
STOLE THEIR IDENTITIES AND FILED
MORE THAN 100,000 DOLLARS IN
FAKE UNEMPLOYMENT ASSISTANCE
CLAIMS.
HE HAS NOT ENTERED A PLEA.
IN CALIFORNIA, A HOSPITAL WORKER
ALLEGEDLY STOLE IDENTITIES OF
DYING PATIENTS FOR A FRAUD RING.
THIS GUY DIED A FEW HOURS AGO.
HOW MANY NAMES DO WE NEED?
HE TEXTED A CO-CONSPIRATOR.
AND IT IS HAPPENING IN EVERY
CITY AND STATE.
CROOKS STEALING BILLIONS IN
PANDEMIC-RELATED STATE
UNEMPLOYMENT BENEFITS.
>> CLAIMS BEING MADE IN THE
NAMES OF INMATES, DEATH ROW
PEOPLE, DEAD PEOPLE, FAKE
PEOPLE.
>> SACRAMENTO DISTRICT ATTORNEY
ANNEMARIE SHUBERT.
>> IT IS THE BIGGEST FLEECING OF
AMERICA I THINK WE'LL EVER SEE.
>> Reporter: UNEMPLOYMENT
INSURANCE FRAUD IS HAPPENING
ACROSS THE COUNTRY.
BUT CALIFORNIA IS GROUND ZERO
WITH ESTIMATED 20 TO $30 BILLION
IN FRAUD IN JUST TWO YEARS.
EQUAL TO ALMOST 10% OF WHAT
CALIFORNIA STATE AGENCIES SPENT
LAST YEAR, STOLEN.
WHO IS BEHIND IT?
EVERY DAY AMERICANS AND
CRIMINALS.
EVEN OVERSEAS CRIME SYNDICATES
CASHING IN ON PANDEMIC
UNEMPLOYMENT ASSISTANCE.
MANY FILING OBVIOUSLY FAKE
CLAIMS USING ALIASES LIKE MINI
MOUSE, POPPY BREECHES AND JOHN
DOE.
BUT THE STATES WERE ALSO UNDER
PRESSURE TO ISSUE CHECKS TO
PREVENT MASS UNEMPLOYMENT AND
POVERTY.
TENS OF THOUSANDS OF CALIFORNIA
PRISON INMATES NAMES WERE USED
TO FILE CLAIMS.
AND SEND THOSE CHECKS TO
ADDRESSES NATIONWIDE.
>> ANY ONE OF THESE HOUSES COULD
BE A DROP SPOT.
>> AND YOU WOULD NEVER KNOW.
>> NEVER.
>> Reporter: USED TO UP COVER
THIS KIND OF FRAUD.
HE SAYS THE TOTAL LOSSES ARE
MUCH HIGHER THAN MOST STATES ARE
WILLING TO ADMIT.
>> I CAN TELL YOU IN SOME STAYS
WE SAW AS MANY AS 3 OUT OF 4
APPLICATIONS IF ARE SOME FEDERAL
PROGRAMS WERE VERY LIKELY FRAUD.
>> .5%?
>> 75% IN SERENA STATES.
ASTUNNEDING NUMBER.
>> Reporter: MANY CLAIMS ARE
FILED UNDER STOLEN IDENTITIES,
YOURS AND MINE, FOR SALE ON THE
DARK WEB.
THIS PERSON IS SELLING 8,000
PASSPORTS, SEVEN BUCKS EACH.
>> AND THEY CONTAIN PERSONAL
INFORMATION SUCH AS SOCIAL
SECURITY NUMBERS AND DATE OF
BIRTH.
>> SOME FILE THOUSANDS OF BOGEYS
CLAIMS SIMULTANEOUSLY.
MOST STATES DON'T SHARE
INSURANCE CLAIM OR FRAUD
INFORMATION WITH EACH OTHER.
NBC NEWS ASKED ALL 50 STATES
THEY HAD LOST TO FRAUD AND HOW
MANY AMERICANS HAD BEEN
EFFECTED.
MOST DIDN'T KNOW OR WOULDN'T
SAY.
BUT OHIO STATE -- WAS CANDID.
HIS OWN STOLEN IDENTITY WAS USED
IN A FRAUD SCHEME.
>> WE FOUND SYSTEMIC FAILURES AT
ALL LEVELS.
WE FOUND THAT THE SYSTEM DID NOT
HAVE THE PROPER CONTROLS TO
AVOID FRAUD AND OVER PAYMENTS.
WE THINK THE TOTAL NUMBER NOW IS
OVER $5 BILLION IN LOSS.
>> WE ARE GOING TO HAVE TO FIX
THE PROBLEM UNLESS AMERICANS
WILLING TO ACCEPT THAT WE'RE
GOING TO LITERALLY SENDS
HUNDREDS OF BILLIONS TO CRIMINAL
D.
>> Reporter: EASY MONEY IN
FILING FAKE CLAIMS.
LOT OF PEOPLE MAY THINK
UNEMPLOYMENT INSURANCE FRAUD IS
KIND OF A VICTIMLESS CRIME.
YOU ARE JUST TAKING MONEY FROM
THE GOVERNMENT.
>> ASK ANYBODY ON THE OTHER SIDE
OF A HANDGUN, AUTOMATIC WEAPON
OR AR 15 THAT'S BEEN PURCHASED
WITH UNEMPLOYMENT INSURANCE
FRAUD IF THAT IS A VICTIMLESS
CRIME.
ASK ANYBODY WHOSE CHI CHILD WAS
FOUND DEAD IN A ROOM BECAUSE OF
FENTANYL POISING.ONING.
THIS IS NOT A VICTIMLESS CRIME.
>> Reporter: CALIFORNIA
AUTHORITIES HAVE BEEN MOVING TO
BLOCK THIS KIND OF FRAUD.
BUT EXPERTS BELIEVE THE SCALE OF
THIS FRAUD IS EXPECTED TO
SURPASS $200 BILLION.
THAT IS THE AMOUNT OF MONEY THAT
GOOGLE'S PARENT COMPANY MADE
WORLDWIDE LAST YEAR.
>> EYE POPPING ON SO MANY
LEVELS, AND YOU ARE SKEPTICAL
THAT WE'LL GET MUCH OF THIS
BACK.
>> EXPERTS SAY HIGHLY UNLIKE I.
IT WAS STOLEN BY OVERSEAS CRIME
SINNED CATS A LOT OF IT.
ALSO VERY --.
THINK OF THAT MONEY.
200 BILLION DOLLARS, SCHOOLS,
HOSPITAL, KIDS THROUGH COLLEGE.
CANCER RESEARCH.
IFs YOUR MONEY.
IT IS MY MONEY.