Over the summer, a change in Colorado’s unemployment fraud prevention system caused more than 5,000 Coloradans to have their unemployment claims wrongfully withheld. These individuals, who desperately needed the money, were deprived of the financial support they required.
The Colorado Department of Labor and Employment has replaced its previous identity verification partner, ID.me, with a new company called Advanced Network Management (ANM) in order to combat fraud. However, since the switch occurred, the department has experienced an increase of 22,000 fraudulent claims since April. Consequently, the department has implemented additional restrictions to prevent these false claims, inadvertently causing a delay in processing 5,766 legitimate claims.
Over the next six months, the department has allocated a payment of approximately $200,000 to ANM for their identity verification services, known as TrueID, in collaboration with LexisNexis. This investment aims to combat fraudulent activities by individuals attempting to exploit the system through the submission of false claims.
Many claimants in Colorado reached out to our newsroom, expressing their concern about their claims being delayed for weeks or even months, CBS News reported.
Numerous individuals who were not receiving payment expressed their difficulties in obtaining useful assistance from CDLE’s customer service. Claimants indicated that even when able to reach a live representative, they frequently received incorrect instructions regarding the necessary steps to resolve their payment issues.
“It was described as ‘maddening’ by one claimant speaking to CBS News Colorado.”
Additional claimants have expressed experiencing extended wait times on the phone, enduring over an hour of waiting before being advised to continue waiting.
Since April 1, the department has disclosed data on the average wait times for each of its four customer service phone lines.
303-318-9000:
- The average daily duration was 23 minutes and 38 seconds.
- On average, the longest hold per day was 56 minutes and 25 seconds.
- Total calls picked up: 32,438.
- Average calls picked up per day: 457
Please note that the number 303-318-9035 is our Benefit Payment Control line specifically designed to help individuals with inquiries regarding overpayments. However, we regret to inform you that we are unable to assist those with fraud-related issues on this line. Consequently, individuals seeking to make payments, inquire about payment plans, or request a waiver for legitimate overpayments may experience longer waiting times than usual.
- On average, there was a daily hold time of 13 minutes and 10 seconds.
- On average, the longest hold per day was 50 minutes and 45 seconds.
- Total calls picked up: 4,390.
- Average calls picked up per day: 73
1-800-388-5515:
- The average daily duration was 23 minutes and 24 seconds.
- On average, the longest hold per day was 52 minutes and 18 seconds.
- Total calls picked up: 12,933.
- Average calls picked up per day: 182
303-536-5615:
- The average daily duration was 17 minutes and 3 seconds.
- On average, the longest duration of hold per day was 1 hour and 21 minutes.
- Total calls picked up: 58,906 calls
- Average calls picked up per day: 807
CDLE has terminated its association with ID.me due to the expiration of the contract term. Additionally, they have initiated a fresh bidding process to ensure the attainment of fair and reasonable pricing.
However, CBS News reported in the previous year that there were national concerns regarding ID.me’s technology and its facial recognition software, which was allegedly less accurate when identifying individuals with darker skin.
Blake Hall, the CEO of ID.me, stated that ID.me has undeniably improved the overall access rates, particularly for communities of people of color, in comparison to the data brokers we compete with. Moreover, the facial recognition technology used in ID.me’s system is constantly supported by human intervention. We have a dedicated team of human agents who continuously review any negative decisions made by the AI and possess the authority to override it. Additionally, we have another team of video chat agents who personally compare the user’s appearance to the photo on their ID, ensuring a match without relying solely on facial recognition. It is important to note that this team has always been an integral part of our system.
Hall also provided CBS News Colorado with the following statement regarding the conclusion of their partnership:
In this digital era, ID.me acknowledges the significance of robust verification practices and standards. We are committed to collaborating with state partners and organizations nationwide, including Colorado, who are keen on comprehending the most efficient strategies to combat fraud. Additionally, we support them in elevating their standards for enhanced security measures.
“As state agencies constantly evaluate options and approaches to verification, ID.me is committed to ensuring we’re viewed as a resource for any state partners looking to apply the most rigid standards, particularly given our NIST IAL2 & AAL2 standard certifications – the highest standard set by the Department of Commerce. We’re focused on all future partner opportunities and efforts to protect taxpayer resources with the safest, most secure verification services.”
CBS News Colorado reported extensively about issues with ID.me and Colorado’s Unemployment Insurance Program throughout the pandemic. Click here to see those stories.
According to CDLE, a majority of the valid claim holds have been released, and the organization is currently in the process of releasing more as its staff manually verify each claim.
In an email to CBS News Colorado, Philip Spesshardt, Director of the Division of Unemployment Insurance, explained that the department has dedicated the past 6 weeks to identifying valid claims and facilitating their release. This process has been time-consuming due to the large number of fraudulent activities and the extensive knowledge these fraudsters possess about their victims.
In the meantime, if you’re still having trouble with your claim, you can follow the steps on how to verify your identity with TrueID by clicking here. If you have called all help lines and still have not received helpful answers, please write to our tip email by clicking here, and we’ll do our best to get you some answers.
If you suspect that you have fallen victim to unemployment fraud, the department provides the following guidance:
In case an individual receives an unsolicited email requesting a password reset for their My UI+ account, it is advised to disregard that email and adhere to the following instructions:
Current unemployment claimants should ignore the email (if they did not request a password change) and log in to MyUI+ from the official UI website. Verify that their information (contact, banking, payments, etc) is correct. And then each time they log in to MyUI+, they should review this information to make sure that it is still correct. If someone is able to log in and all the information is correct, no further action is necessary.
“If they log in, and the information has been altered, please update the information and then reset your password. If they see that a payment has gone to an account that is not theirs, they should fill out a fraud form on our website. Please note that when a fraud report is filled out, the claimant may be temporarily locked out of their account while we investigate the issue.
In the event that the claimant cannot access their account, kindly complete a fraud report. Locate and click the “Report Identity Theft/Fraud” button, then choose the option “I’m an Individual Reporting Unemployment Fraud.” Under the drop-down menu labeled “What Type of Identity Theft Are You Reporting,” select “I received a suspicious text or email message about my unemployment claim” and proceed by following the subsequent instructions.
Under no circumstances will CDLE send text messages containing links to access an account. Such messages are sent by hackers aiming to acquire a claimant’s login details through those links. Engaging with these links or communicating with the hackers enables them to hijack the account, modify payment methods, and steal funds.
RELATED: Colorado labor department reveals reasons for “frustrating” shortfalls, as hundreds still wait for unemployment money
