Business

Fraud Overwhelms Pandemic-Related Unemployment Programs

Published

6 years ago

February 28, 2021

Web pages used to show information for collecting unemployment insurance in Virginia, right, and reporting fraud and identity theft in Pennsylvania, are displayed on the respective state web pages, Friday, Feb. 26, 2021, in Zelienople, Pa. Massive fraud in the nation's unemployment system is raising alarms even as President Joe Biden and Congress prepare to pour hundreds of billions more into expanded benefits for those left jobless by the coronavirus pandemic. (AP Photo/Keith Srakocic)

COLUMBUS, Ohio (AP) — With the floodgates set to open on another round of unemployment aid, states are being hammered with a new wave of fraud as they scramble to update security systems and block scammers who already have siphoned billions of dollars from pandemic-related jobless programs.

The fraud is fleecing taxpayers, delaying legitimate payments and turning thousands of Americans into unwitting identity theft victims. Many states have failed to adequately safeguard their systems, and a review by The Associated Press finds that some will not even publicly acknowledge the extent of the problem.

The massive sham springs from prior identity theft from banks, credit rating agencies, health care systems and retailers. Fraud perpetrators, sometimes in China, Nigeria or Russia, buy stolen personal identifying information on the dark web and use it to flood state unemployment systems with bogus claims.

The U.S. Justice Department is investigating unemployment fraud by “transnational criminal organizations, sophisticated domestic actors, and individuals across the United States,” said Joshua Stueve, a spokesman for the department’s criminal division.

The Labor Department inspector general’s office estimates that more than $63 billion has been paid out improperly through fraud or errors — roughly 10% of the total amount paid under coronavirus pandemic-related unemployment programs since March.

“We’re all learning that there is an epidemic of fraud,” said U.S. Rep. Kevin Brady of Texas, the ranking Republican on the House’s powerful Ways and Means Committee. Brady said the $63 billion estimate “is larger than the entire budget of the Department of Homeland Security.”

“These are frightening levels of fraud,” he said.

Full Coverage: Coronavirus pandemic

California has been the biggest target, with an estimated $11 billion in fraudulent payments and an additional $19 billion in suspect accounts. Colorado has paid out nearly as much to scammers — an estimated $6.5 billion — as it has to people who filed legitimate unemployment claims.

Other estimates, according to AP reporting across the states, range from several hundred thousand dollars in smaller states such as Alaska and Wyoming to hundreds of millions in more populous states such as Massachusetts and Ohio.

The nationwide fraud has fed on twin vulnerabilities: a flood of jobless benefit applications since the pandemic began that has overwhelmed state unemployment agencies and antiquated benefit systems that are easy prey for crafty and persistent criminals.

In Ohio, weekly first-time unemployment claims have ranged from 17,000 to more than 40,000 during the pandemic. But since late last month, those claims have topped more than 140,000 some weeks, with many of them believed to be fraudulent. The state has paid at least $330 million in fraudulent pandemic unemployment benefit claims.

Trying to catch so many bogus claims delays payouts to Ohioans who are legitimately in need of help. In the Columbus suburb of Upper Arlington, Cynthia Sbertoli was receiving $228 a week after she was laid off in March from her job with a nonprofit that runs high school student exchange programs.

Her benefits were put on hold in January after she informed the state that someone had tried to use her identity in a scam to claim benefits. She thought the problem was resolved but has yet to see a renewal of her benefit checks, which she and her husband use to help pay for a son’s vision and auditory therapy.

“It’s just not a good way to take care of people,” said Sbertoli, 49.

In Indiana, Kentucky and Maryland, officials have said that for certain weeks in the new year at least two-thirds of the claims they received were classified as suspicious due to problems verifying identities. It’s not the first brush with serious fraud for Maryland. In July, officials said they’d discovered a massive criminal enterprise that had stolen more than $500 million in unemployment benefits.

Among states that have been hardest hit are those participating in the Pandemic Unemployment Assistance program adopted by Congress last year. It has been a lifeline for out-of-work freelancers and gig workers who normally don’t qualify for unemployment insurance, but it’s also been a boon for criminals who use stolen identities to make claims. Nearly 800,000 of the 1.4 million claims Ohio has received through this program have been tagged for potential fraud.

Scams have been so widespread that the U.S. Department of Justice is setting aside money to hire more prosecutors. In New York alone, the Department of Labor says it has referred “hundreds of thousands of fraud cases” to federal prosecutors. The state says it has blocked $5.5 billion in fraudulent claims, while New Jersey says it’s prevented $2.5 billion from flowing into the hands of criminals.

Despite those efforts, a government watchdog agency says not enough states are taking the necessary steps to prevent fraud.

In its memo this past week, the U.S. Department of Labor’s Office of Inspector General said that by the end of last year, 22 of the 54 state and territorial workforce agencies were still not following its repeated recommendation to join a data exchange run by the National Association of State Workforce Agencies.

That system is designed to check Social Security numbers used in claims to see if they are being used in multiple states, or are linked to dead people or other scam methods. The office said it had found $5.4 billion in fraudulent payments from March through October.

The biggest chunk of that, $3.5 billion, came through claims that used the same Social Security numbers in multiple states. One number was used on claims in 40 states. Twenty-nine of the states paid those claims, totaling more than $220,000.

“The Department needs to take immediate action and increase its efforts to ensure (states) implement effective controls to mitigate fraud in these high risk areas,” the inspector general warned Labor officials.

The people whose identities are used to claim improper benefits often don’t find out until they receive their tax statements.

Andrew Heidtke received a letter in September from the Wisconsin Department of Workforce Development notifying him that unemployment claims he never applied for were being processed.

“I had no idea what was happening,” said Heidtke, who works as an administrative assistant for an engineering lobbying organization. “I kind of just thought it was spam at first.”

Another victim was 99-year-old Harry Hollingsworth of Strongsville, Ohio. The retired elevator car factory worker received a form in late January showing he had received $3,156 in benefits. Hollingsworth died recently, and his son, Jim Hollingsworth, said the bogus claim created a big hassle.

“It looks like the state, they dropped the ball on this completely,” he said.

In its own survey of state governments, the AP found that many are not publicly disclosing the level of fraud. Some officials expressed concern that providing any information, no matter how general, could provide criminals an opening to exploit their systems further.

President Joe Biden’s administration is pledging to cut down on unemployment fraud even as it tries to extend benefits through September. As part of previous legislation, the administration is sending states $200 million to fight it.

That would be welcome in Virginia, where House Minority Leader Todd Gilbert, a Republican, said the Legislature’s watchdog agency should investigate how the state allowed $40 million in bogus payments through prison inmate-related scams.

“How many desperate people, laid off through no fault of their own, could have been helped with that money?” he asked. “It’s maddening.”

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Getty Images files for Chapter 11. What comes next for Florida photographers and videographers?

Published

1 hour ago

November 9, 2026

FNN SPORTS

Getty expects licensing and contributor payments to continue as it seeks court approval for a restructuring. The case comes as AI puts pressure on generic stock imagery and verified coverage remains valuable to newsrooms.

Florida National News | Nov. 9, 2026

Getty Images is asking a federal bankruptcy court to approve a restructuring that would cut its debt and take the company private while it continues licensing photographs and video. For Florida photographers and videographers who sell work through Getty, the immediate question is whether royalties and assignment payments keep arriving on schedule. The longer-term question is which images and footage buyers will still pay to license as generative artificial intelligence makes some stock visuals easier to produce.

Getty Images Holdings Inc. and six subsidiaries filed for Chapter 11 protection Oct. 21 in Delaware. The company entered the case with support from major financial stakeholders and says it expects to continue serving customers and paying contributors in the ordinary course. The court is scheduled to hear several initial motions Nov. 17 and consider confirmation of the restructuring plan Dec. 15. Getty Images Chapter 11 filing and financing disclosure · Bankruptcy docket and Nov. 17 hearing notice · BankruptcyData on the Dec. 15 confirmation hearing

What drove Getty into bankruptcy?

The proposed plan includes up to $533 million in equity commitments from Getty family and Koch Equity Development affiliates. That amount includes financing and conversion of some existing debt into equity. The plan would cancel existing shares and put the reorganized company under the ownership of those investors. Getty Images restructuring agreement

Getty reported $2.1 billion in debt at the end of June. Its second-quarter results also showed $110.9 million in payments related to a warrant litigation judgment and interest, as well as higher interest costs tied in part to financing for the proposed Shutterstock acquisition. Getty abandoned that deal in July after Britain’s competition regulator conditioned clearance on the sale of Shutterstock’s editorial business. Getty Images second-quarter results · U.K. Competition and Markets Authority on the abandoned merger

Getty’s results show why the bankruptcy matters differently across the industry. Second-quarter creative revenue fell 2.6% from a year earlier to $127.4 million, while editorial revenue rose 9.2% to $96.5 million. The company did not quantify how much of the creative decline was attributable to AI. Getty Images second-quarter results

What Florida contributors should watch

Getty says it expects to maintain normal operations through the restructuring. For freelancers, the next royalty statement and deposit will give them a more direct view of whether the process is affecting their income. A contributor who licenses archive photos, a freelance crew that invoices for assignments and a production company that supplies footage may each have different payment terms. Getty Images restructuring announcement

Contributors can reconcile deposits against statements and keep copies of agreements, invoices and notices. An overdue balance or a notice naming a specific contract warrants a closer look at the applicable court documents and deadlines. After the case, the terms that could affect earnings include royalty rates, exclusivity, subscription payouts and how a distributor packages photos and video.

A hand holds a smartphone in front of a blue and purple network of glowing image thumbnails

An AI-generated illustration for Florida National News’ coverage of Getty Images’ Chapter 11 restructuring and competition from generative AI.

Which Florida assignments are most exposed to AI?

Generic office scenes, beach-themed backgrounds and short lifestyle clips face more direct competition from generative tools. A buyer who needs a mood or setting can generate several options without scheduling a shoot. A buyer who needs footage of a specific launch from Florida’s Space Coast, storm damage in a particular neighborhood or a decisive play at a Tampa Bay Buccaneers game still needs a verifiable record of that event.

Florida’s news, sports and entertainment calendar gives local crews opportunities to supply that record. A videographer covering a major convention in Orlando might have an interview or clean footage that a national outlet missed. A photographer covering a local election might have the only usable image of a concession speech. For archive sales, accurate dates, locations, names and captions help buyers find the material and establish what it shows. Event credentials, assignment agreements and existing licenses can limit which uses a contributor can offer.

Getty is also selling generative AI tools. The company says its image generator is trained on licensed creative content and proprietary data and that licenses carry indemnification under the applicable agreement. That gives Getty a way to sell generated visuals to commercial buyers while continuing to license photographs and footage of real events. Getty Images generative AI terms and training FAQ

Where AP and Reuters fit

The Associated Press and Reuters overlap most directly with Getty in editorial coverage. Both can serve publishers that want additional sources of news photographs and video. Reuters Connect also offers live video and individual picture licensing. AP says its standards prohibit the use of generative AI to create, alter or enhance news photography. Associated Press AI standards · Reuters Connect licensing

AP and Reuters could gain business if publishers add a second supplier or Getty changes its prices, packages or service. Getty’s plan also leaves open a different outcome. If the company emerges with less debt and can invest more in editorial coverage, the two agencies could face a stronger competitor.

What comes next

The December hearing will determine whether Getty can move forward with the proposed plan, subject to the court’s ruling and remaining conditions. Getty has said it expects to complete the restructuring by year-end. For Florida contributors, the near-term measures are whether payments arrive, assignments continue and licensing terms change. The longer-term test is whether distributors and newsrooms will pay enough for distinctive, verified Florida coverage to sustain the people who produce it. Getty Images restructuring announcement · BankruptcyData on the Dec. 15 confirmation hearing

Business

New AdventHealth Middleton Clinic Brings Pediatric Specialists, Urogynecology Near The Villages

Published

1 week ago

October 30, 2026

FNN NEWS

The multispecialty clinic features 24 treatment rooms, pediatric imaging and services designed to bring care closer to Middleton families.

MIDDLETON, Fla. (FNN) — Families in Middleton have a new option for pediatric and women’s specialty care with the opening of the AdventHealth Middleton Multispecialty Clinic, according to an Oct. 29 news release from AdventHealth.

Located at 2274 Alder Ave., the clinic brings together pediatric primary care, pediatric cardiology, pediatric orthopedics and women’s urogynecology services. The facility includes 24 treatment rooms, a pediatric X-ray room and spaces for children’s heart screenings.

Bringing care closer to families

Middleton, a master-planned community along Central Parkway, is home to approximately 1,200 families and households, many with residents who work in and around The Villages, according to the release.

For Jenny Trew, whose family was the first to move to Middleton, the new clinic could mean fewer long trips for routine appointments. She has been driving nearly an hour to Clermont for pediatric care for her 13-year-old twin sons, Jasen and Jackson.

“Going to the pediatrician usually means pulling both boys out of school, taking time away from work and making a day out of something that should be pretty simple,” Trew said in the release.

Having a pediatrician in the neighborhood will make it easier to balance health care appointments with work, school, sports and other activities, she said.

Dr. Vanessa Carroll, chief medical officer of AdventHealth for Children, said proximity matters when families are seeking care for a sick or injured child.

“Parents don’t want to take their child to just any doctor. They want someone they can trust, right around the corner,” Carroll said in the release. “Because when your child is sick or injured, an hour-long drive can feel even farther.”

Expanding women’s specialty services

The clinic also provides urogynecology services, including care for urinary incontinence and pelvic floor conditions.

The location gives women a nearby option for specialized treatment aimed at improving comfort, health and quality of life, according to AdventHealth.

“Women spend so much of their lives caring for others, and it can become very easy to put their own health last,” Kristen Toth, vice president of AdventHealth for Women, said in the release. “We want women to know there is care here for them, too.”

The clinic brings AdventHealth for Children and AdventHealth for Women together at one location to serve families through different stages of life.

Supporting students and schools

Middleton’s early childhood centers, two K-8 schools and high school collectively enroll more than 3,000 students, according to the release.

LeAnne Yerk, principal of The Villages Charter Elementary School, said access to nearby pediatric care supports students’ health and readiness to learn.

“As educators, we see firsthand that a child’s ability to learn, grow and thrive in the classroom is deeply connected to their health and well-being,” Yerk said in the release.

She described the clinic’s proximity to schools as an important resource for students and families, helping connect health care with educational support.

Location and appointments

The AdventHealth Middleton Multispecialty Clinic is located at 2274 Alder Ave., Middleton, Florida.

To schedule an appointment, call:

Pediatric primary care: 352-467-7862
Pediatric cardiology: 352-353-2788
Pediatric orthopedics: 407-303-5687
Women’s urogynecology: 407-303-1380

For online appointment information, visit MyMiddletonPediatrics.com for children’s services or MiddletonUrogyn.com for women’s services.

Business

GOAA Highlights Airport Improvements, Approves New Small Business Policies

Published

3 weeks ago

October 22, 2026

FNN NEWS

Gate Link train on an elevated guideway at Orlando International Airport, with palm trees, airport buildings and a control tower behind it.

A Gate Link train travels along an elevated guideway at Orlando International Airport, with the airport’s control tower in the background. Photo courtesy of the Greater Orlando Aviation Authority.

Terminal upgrades, parking projects and international connections mark the authority’s fiscal year review.

ORLANDO, Fla. (FNN) — The Greater Orlando Aviation Authority highlighted terminal improvements, expanded international connections and parking projects during its fiscal 2026 review, while its board adopted changes to a local business program and announced a new statewide small business initiative.

The updates affect Orlando International Airport and Orlando Executive Airport, which GOAA operates.

“We are undertaking an ambitious effort to redefine what it means to deliver a world-class airport experience,” GOAA CEO Lance Lyttle said in the authority’s announcement.
“As we welcome more visitors, more airlines, more routes, and new programs, our responsibility is to elevate every part of the journey — making it more welcoming, intuitive, and connected.”

A Gate Link train travels along an elevated guideway at Orlando International Airport, with the airport’s control tower in the background. Photo courtesy of the Greater Orlando Aviation Authority.

Terminal Improvements Focus on Connections and Families

Among the completed projects was an enclosed pedestrian bridge with moving walkways connecting Orlando International Airport’s train station and Terminal C.

Terminal C also opened a new wing serving gates 250–254, providing additional capacity and becoming the new home for Virgin Atlantic’s airport operations.

Three new Family Zones — one in each terminal — offer spaces for children and families to play, read and recharge. GOAA also highlighted improvements to directional signs along airport roads, in parking areas and throughout the terminals.

Parking Expansion and $40 Million Improvement Program

GOAA reported progress on a parking guidance system at Terminal C, with phased activation across all garages planned through mid-2027.

Dedicated employee parking areas are intended to free additional spaces for travelers. Planning is also underway for two new garages expected to add 8,000 public parking spaces over the next few years.

Separately, the authority’s $40 million Beautiful Airports Program targets safety, functionality and appearance across garages, terminals and other airport areas.

Aviation Investments and International Service

The fiscal year review highlighted a $50 million investment by dnata, a $26 million redevelopment by Signature Aviation at Orlando International Airport and groundbreaking for Sky Harbour’s $40 million campus at Orlando Executive Airport.

International service developments included ZIPAIR’s nonstop passenger charter flights between Orlando and Tokyo and Iberia’s launch of nonstop service to Madrid.

GOAA described ZIPAIR’s service as the first passenger charter connection between Florida and the Asia-Pacific region.

Business Policy Changes Broaden Eligibility

The board adopted revisions to GOAA’s Local Developing Business program following research, town halls and discussions with internal experts.

The changes increase the allowable personal net worth threshold and clarify how assets are excluded from that calculation, including primary residence equity, business equity, retirement assets and certain nonliquid holdings.

Business size standards were also revised to account for inflation and increased operating costs. The announcement did not specify the updated financial thresholds.

A new Small Business program will complement the local program and extend eligibility to qualifying businesses throughout Florida. Under the announced framework, participating businesses must fall within 50% of the applicable U.S. Small Business Administration size standard.

GOAA said detailed guidelines for both programs would be posted on its website. Those guidelines will provide businesses with the information needed to assess eligibility.