As Hundreds of Thousands of Consumers Continue To Face Unemployment Insurance Scams, TransUnion to Partner with State Governments to Mitigate These Fraud Risks

Rhea-AI Summary

TransUnion is addressing the rise of unemployment insurance fraud impacting millions of Americans, particularly among younger generations. A recent study indicates that 10% of adults experienced digital fraud, with incidents higher among Gen Z (15%) and Millennials (12%). To combat this issue, TransUnion has secured a Blanket Purchase Agreement from the U.S. Department of Labor to enhance identity verification and fraud detection for state unemployment systems. Their TruValidate solution will help streamline claims processing and enhance security.

Positive

• Secured Blanket Purchase Agreement with U.S. Department of Labor.
• TruValidate solution improves identity verification and fraud detection.

Negative

• 10% of adults targeted by unemployment insurance scams.

TransUnion’s public sector group to help government agencies with fraudulent activity impacting many unemployed Americans

CHICAGO, Feb. 17, 2022 (GLOBE NEWSWIRE) -- The U.S. Bureau of Labor Statistics recently reported 6.5 million consumers were unemployed at the end of January. In addition to facing the challenges of not being employed, TransUnion’s (NYSE: TRU) ongoing U.S. Consumer Pulse study* found that in February 2022 unemployment insurance scams impacted 10% of adults who reported being targeted with digital fraud in the last three months.

Younger generations reported higher incidents of such scams – 15% of Gen Z and 12% of Millennials. The study found that 38% of Americans said they’ve been targeted with digital fraud in the last three months.

As fraudsters continue to target unemployed consumers, TransUnion is preparing to help state unemployment insurance systems improve identity verification and strengthen fraud detection. TransUnion was recently awarded a Blanket Purchase Agreement (BPA) from the United States Department of Labor, which allows the company to provide its services.

“Unemployment insurance fraud is impacting citizens across the country and we are proud to be helping states modernize their unemployment insurance systems,” said Jonathan McDonald, executive vice president and head of TransUnion’s public sector business. “The insights derived from our solutions allow government stakeholders, be it federal, state or local, to serve their constituents more quickly and effectively.”

TransUnion will have the opportunity to work with interested states to implement its flagship identity proofing, risk-based authentication and fraud analytics solution suite – TransUnion TruValidate – into their respective unemployment insurance systems. TruValidate unites personal and digital data into one of the most comprehensive data identity platforms in the world, detecting threats across markets while ensuring friction-right user experiences.

Since 2020, TransUnion has instituted a three-phased approach to help states get on track to paying claims to those in need. The approach includes:

1. Triage current backlog of suspended claims — Clear good claims and focus on actual fraud.
2. Implement new online identity and device verification — Improve accuracy of applications before they’re submitted.
3. Review existing claims for authenticity — Ensure benefits continue to reach those who qualify.
   

“We’ve taken the issue of unemployment insurance fraud seriously since the beginning of the pandemic, and we believe TransUnion is well positioned to help states quickly solve this problem,” concluded McDonald.

Further details about unemployment fraud trends are available in the following blog. More information about TransUnion’s public sector business can be found here.

*Data from the Consumer Pulse study included responses from 2,949 U.S. adults between Feb. 7-Feb. 15, 2022.

About TransUnion (NYSE: TRU)
TransUnion is a global information and insights company that makes trust possible in the modern economy. We do this by providing an actionable picture of each person so they can be reliably represented in the marketplace. As a result, businesses and consumers can transact with confidence and achieve great things. We call this Information for Good®.

A leading presence in more than 30 countries across five continents, TransUnion provides solutions that help create economic opportunity, great experiences and personal empowerment for hundreds of millions of people.

http://www.transunion.com/publicsector

Contact	Dave Blumberg
	TransUnion
E-mail	david.blumberg@transunion.com
Telephone	312-972-6646

FAQ

What is TransUnion doing about unemployment insurance fraud?

TransUnion is helping government agencies improve identity verification and fraud detection for unemployment insurance systems.

What percentage of adults experienced scams according to TransUnion?

10% of adults reported being targeted by unemployment insurance scams in the last three months.

Which age groups are most affected by unemployment insurance scams?

Gen Z and Millennials are particularly affected, with 15% and 12% reporting scams, respectively.

What solution does TransUnion offer to combat fraud?

TransUnion's TruValidate solution provides identity proofing, risk-based authentication, and fraud analytics.

When was the press release by TransUnion issued regarding fraud?

The press release was issued on February 17, 2022.