Unemployment insurance programs in Colorado and around the country are struggling with an unprecedented wave of fraudulent claims, something cybersecurity experts say numerous data breaches the past decade have made possible.
Self-employed workers seeking assistance have found their applications stalled or payments delayed because of tighter security. Already stretched thin, the Colorado Department of Labor and Employment has redirected its limited resources. And thousands of unsuspecting Colorado residents have had to spend hours trying to rectify the fallout from the scam after claims were made in their names.
“The issue is that anyone can fill out these applications and get paid in a couple of days. All the personal identifiable information they need is readily available on the dark web as a result of countless breaches,” said Tyler Moffitt, a security analyst at Webroot, a Broomfield-based cybersecurity company.
Software that spoofs Internet Protocol addresses allows scammers to hide their digital