Half of US states now using facial recognition to vet unemployment claims
cnn.com
cnn.com
My dad was one of the 21.5 million who had their SSNs stolen as a part of having a government background check done [2], and a couple weeks ago he was personally a victim of someone fraudulently applying for unemployment benefits on his behalf.
I'm not saying that facial recognition is a reasonable way to try to fix this, but we're talking about $400,000,000,000 being stolen. They have to figure something out.
[1]: https://www.axios.com/pandemic-unemployment-fraud-benefits-s...
[2]: https://www.nytimes.com/2015/07/10/us/office-of-personnel-ma...
No, we’re talking about a firm whose business depends on the perception of the magnitude of the problem claiming that. The source of that number in the article you cite is...the CEO of ID.me.
And when pressed by CNN to support that staggering figure ID.me responded with...promotional material for their product, instead. [0] It couldn't be any more clear that its a BS number the CEO pulled out of his colon for promotional reasons.
[0] https://www.cnn.com/2021/06/10/politics/what-matters-unemplo...
Fraud should be prevented, for sure! But a private corporation black box governing access to social safety nets is not to be tolerated.
I want state governments to have a reliable online identity option. I want it to be optional by law - I should be able to make an in person visit instead. I do not want private parties to have any access to the service whatsoever. I want private sector outsourcing of such services to be completely outlawed. No private third party has any business knowing about my interactions with any government provided service.
I should never have to share my data with private third parties in order to receive government services. Such usage data is very sensitive and thus a huge privacy concern.
Consider: If you ever had to go on food stamps, would you want retailers, potential employers, etc to be able to purchase that data? What about the risk of a data breach?
My last link points to a blog recommending the USPS provide in person proofing, which I believe meets your in person proofing requirement. Login.gov is a service operated by the US government's GSA agency. It is not a private entity providing this service. It was developed as part of 18F and the US Digital Service.
It might be a high hill, though softening to allow contractors involved in providing the service to know but requiring them to observe privacy rules similar to what would apply in the healthcare space under HIPAA, would make it much lower.
At the state level, for either version, I would recommend, if possible in your state, you to work with advocacy organizations who are willing to sponsor a public ballot initiative rather than focussing on policymakers alone; while industry insiders can and will buy ads against ballot measures, they can't cut them off by compromising strategically targeted legislators the way they often can bills in the legislature.
It is one of the reasons ID resolution in the US is largely outsourced to private entities, which have no such restrictions.
It absolutely could require one for functions within the federally-regulatable sphere, and not prohibit its use for private and state functions.
(If it was national-but-decentralized, it could just set standards for the digital ID and let states issue them, the same way it has for physical ID, see, e.g., REAL ID.)
Just because some States are mandating this privacy invasion does not mean it is legal. This appears to have not yet been tested in the courts.
> The US Department of Labor Inspector General Office in late March estimated that at least $89 billion of the estimated $896 billion in federal unemployment program funds could be paid improperly, with a significant portion attributable to fraud. This is based on a historic improper payment rate of at least 10%.
This is lazy BS from the other side; they know for a fact that the rate of fraud is going to be higher than it was pre-COVID. We know how much has been paid out and the only question is what the fraud rate is.
I agree that you have to be skeptical given that id.me is selling a product, and to be honest, I only put two-and-two together after making my comment and revisiting the axios article since I first came across it. That being said, given how many states are using id.me, they have unique visibility into the problem and I don't think it's fair to write them off as entirely untrustworthy.
tl;dr: The number is probably between $100B and $400B. It's hundreds of billions of dollars either way.
Assuming it’s higher with covid seems without justification is just an assumption. If anything it might be lower if a higher percentage of people applied for unemployment without quickly finding a new job.
> According to the Maryland Department of Labor, as of July 13, 1,443,211 or 92.31 percent of all out-of-state and in-state claims were confirmed as fraudulent.
https://www.wmar2news.com/unemploymentguide/several-arrests-...
As a percentage of total claims? I don't think they know that. What's the reasoning? Obviously, both numerator and denominator would go up, but beyond that...
Oh hell for NJ you can just send in fake unemployment claims to any business and the burden is on the business to dispute every claim. If they fail to respond or it's lost in the mail then it effectively defaults and the state pays out the scammer. I have a folder of fake claims to my company over the years.
A few years back the state decided to pay one of those false claims out for a women I've never met that doesn't even live in my state, I filed the fraud report, tried to dispute it in the mail, met with my state representatives about it, called the courts, and ultimately never got a resolution.
Being stuck with having to pay a higher (we'll call it tax) rate for my own salary, I instead paid distributions for the rest of the year and converted the business from S-corp to single member LLC out of spite.
When COVID rolled around and I was eligible to collect unemployment for a month or so last year, I filed a claim that's been stuck in 'pending' since April 2020. Yay shitty COBOL code, I guess.
>They have to figure something out.
Or acknowledge that it's fucked beyond repair and replace it with something else like basic income. It'd likely be cheaper and more efficient.
Conservative legislatures and governors/presidents have spent the last few decades gutting the agencies that handle unemployment, and then suddenly an extra 10% of the country is unemployed for weeks. Yeah, we're gonna see an increase in fraud.
Eventually those govts have to take some responsibility for the rampant fraud.
I’m sure “conservatives” are responsible for many ills but where I live this isn’t one of them because they were never involved. If you want to fix it, you have to be honest about the problem.
If you read the comments on this topic it’s pretty clear that there are a bunch of people that don’t want to fix the problem.
I’ve never been a conservative but I am not so much in denial that I will pretend that the comedic failure of execution at the State level by Democrats was actually the fault of some nebulous “conservatives”. The conservatives were never involved. The Democrats own that failure, and you would hope they have the self-awareness to recognize that.
Republicans seem to be judged by their results and if the results are perceived bad their intentions are asssumed to be malicious and based in an ism or phobia of some kind
Your comment on Republican party is spot on. I'd be down with a more centrist and less populist party - Lincoln party would be something I'd consider.
I also don't take politics as seriously as so many people in this country. It shouldn't consume you. It should be a peaceful debate with picking good points and rejecting crazy ideas.
My biggest criticism of HN is that it doesn't know how to handle conflicting interests and most people here have lost their ability to speak freely and against mainstream. It used to be that HN was a contrarian community with lots of interesting perspectives without downvotes. It's no longer the same. My hunch is that social media is shaping the world to be more in-line with mob mentality and it is dismantling the founding principles of America. America is headquarted in Menlo Park, CA.
Democrats seem to think they Republicans have gone "far right" but from my point of view the both have shifted to the left socially with the democrat party taking a HUGE left turn starting around 2008, but really accelerating in 2016...
Where Socially republicans are more "left" or libertarian on many social issues from Gay marriage to Abortion[1], and economically are more open to "Blue Dog" democrat economic positions but now Democrats are "Democratic socialism or nothing".
[1] I recognize with Abortion there are a few state laws they may go against this statement, but this is a direct reaction to Democrats moving away from "Safe, Legal and Rare" of the 90's to full on celebration of abortion as a primary birth control method and women's empowerment issue.
This would have been unheard of in the 90's for a Republican, now today the difference is "Do we Print and spend 3 Trillion or 6 Trillion this year?"
Sadly for me I think the full effects of these terrible economic polices are going to hit about the time I ready to retire. 10 Years go I did not think retirement would be an option.. 2 years go I saw some hope... Today I am back to believing I will work until I am dead as there is no way these economic policies we see today will work out well for anyone.
unlike today where no one wants to work together to get anything done as the other side is "evil"
I am not sure what you believe an "older, nativist, version of the right" looks like so I can not possible comment on that
Edit: I live in a very well run part of blue America. Strong focus on good governance. The local dems try very hard to distance themselves from national politics.
Currently living in the Bay Area, it feels like a proper third world country just like Seattle, Portland and LA. All happen to be Blue cities.
My guess is some project manager at a fraud boiler room stuck your zip code in in the “CO” folder instead of “CA”. The people who file these claims are literally on the phone all day and know what to say.
I can't help but notice that people tend to talk about unemployment in terms of percentages instead of in terms of dollars. While 2020 was obviously an exception it looks like the US has paid out generally around $30billion most years: https://fred.stlouisfed.org/series/W825RC1
Lots of companies make more than every year in pure profit, not just revenue. Apple and Google made more than that last quarter:
https://www.macrotrends.net/stocks/charts/FB/facebook/gross-...
https://www.macrotrends.net/stocks/charts/GOOG/alphabet/gros...
https://www.macrotrends.net/stocks/charts/AAPL/apple/gross-p...
https://www.macrotrends.net/stocks/charts/MSFT/microsoft/gro...
These companies are all doing the "Double Irish" tax dance, so how much of that profit do you think is flowing back into the USA? I feel like if it were really about the dollars we would be fighting these corporate tax arrangements instead of trying to make poor peoples' lives even worse than they already are.
I'm sorry, that's completely ridiculous.
Maybe you disagree with the suggestion that there are way, way bigger fish to fry, and we should prioritize our limited resources accordingly. But to say that it’s “completely ridiculous?” That’s a little over the top.
The bug is in the code, the interface with international trade. It's allowing many orders of magnitude more tax to disappear than the pesky unemployment fraud code.
So no, I think his analogy is solid, the requirements are clear, the implementation is at fault.
The law is quite clear on fraud.
In the analogy the law is the requirements, enforcement is the implementation. You don’t like the requirements, sure. The implementation is still broken because it doesn’t address the fraud. It can’t do anything about the requirements because those are outside the scope of things that can be changed by the implementor.
The analogy is absolutely shit because it presumes the same actor writing the code can change the requirements, which is not true in software engineering nor in the US government.
To your code profiling analogy, we’ve seen a problem and the solution proposed is just to buy more hardware to workaround it.
Yes, that makes it worse, unless you think the poor can afford to do a lot of lobbying for more favorable tax laws.
I’m all for passing laws to repeal tax exemptions but that has jack shit to do with massive fraud.
You don’t encourage reproduction to deal with a murder problem.
400 billion is a 2% of GDP but >10% of the federal budget.
https://en.wikipedia.org/wiki/United_States_federal_budget#/...
Agreed!
In the five years preceding 2020 the US averaged ~2million people claiming unemployment (high of ~2.4, low of ~1.7): https://fred.stlouisfed.org/series/CCSA
Amazon's employee headcount alone could make up half of that figure, at ~1.3 million in 2020: https://www.macrotrends.net/stocks/charts/AMZN/amazon/number...
Add a few more big corporations and I agree we have a very widespread problem:
https://www.macrotrends.net/stocks/charts/AAPL/apple/number-...
https://www.macrotrends.net/stocks/charts/GOOGL/alphabet/num...
https://www.macrotrends.net/stocks/charts/MSFT/microsoft/num...
They told me the wealth will trickle down, so why are we looking at the people already on the bottom to get the money flowing when there's a clog? I guess we're on the Golden Standard after all.
You do know that the discussion is about people who are abusing unemployment, not unemployed people, right?
The effect of combating so-called "abuse" can only make it harder for everyone who legitimately needs unemployment. These people are already time-poor in many other ways (e.g. riding a bus vs owning a car), and every additional hoop you make them jump through means a certain percentage will just give up and suffer. You understand this, right?
We’re talking about people who are stealing money meant for unemployed people and you can’t even bring yourself to admitting that is even a problem. If you’re going to scare quote “abuse”, why don’t you steal from unemployment as well since you don’t seem to think there is anything wrong with it?
> percentage will just give up and suffer.
This is already happening with the existing paperwork. What are you doing to advocate that people don’t even need to pick up the phone or get out of bed to get their unemployment?
> You understand this, right?
You understand that rampant fraud can cause the collapse of the entire setup right?
If Acme Corp. gets an unemployment claim for an employee who’s still working they’re in a much better position to quickly recognize the fraud. And if they get a legitimate claim for a former employee but to a previously unknown bank account it’s easy enough for them to get in touch with the employee to double check the details.
Is it possible that the total fraud would be lower because most businesses would prefer to follow the law and not be busted? Maybe, but it's hard to say.
In California the UI office will get in touch with your former employer to verify your claim. So there's that at least. Not to mention, what do you do when people lose their jobs because the employer has gone out of business?
States that weren’t doing it from the beginning did start checking with employers to determine if a person was actually unemployed.
I think this situation might be a strong case for better id verification and ubi. We've got the cryptographic tools, the funding, and the evidence that other systems are failing terribly. We just need the political will and legislative implementation - Yang had a great foundation for it.
So now employees are financially reliant on employer that just fired them?
'It's all the government' isn't helpful because government is large and complex and doesn't have any kind of central consciousness. You are conflating legal sovereignty with (the authority by which government operates) with operational efficiency.
I'd rather pay out tax money to fraudsters than send the same amount to "people who will keep the money away from fraudsters"
If we’re talking about theft, why not talk about government bailouts of banks, low inheritance tax for the 1%, the corrupt military contracts and the millions of other ways the elite plunders the commons and steals from the working class?
I’m pretty sure when we have the numbers somewhere in the future, unemployment insurance fraud will be a drop in the bucket compared to all of that.
Also, seeing the level of alienation; the miserable conditions of American ‘jobs’ these days (I’m looking at you Bezos), I seriously do not blame people for trying to get more cash to escape their exploitation.
This sounds like a service that the DMV or police or town hall could offer. Every damned public notary does the same when they notarize a document, they check the drivers license against the person. In other words - someone is grifting from the government.
I remember reading about laws preventing the police from collecting license plate data but not private individuals, so companies exist where the police literally buys license plate location data and nobody knows anything about what data they collect. Same with Palantir, same with Clearview and so on.
Kinda disturbing trend to outsource fundamental services regarding identity and privacy to unaccountable private industry.
The people with the strongest aversion, and who pay for the propaganda to create and maintain that aversion in others, are also people who benefit financially from government functions being outsourced to private industry.
That’s on the same level as “Democrats want immigration just for the votes”.
It is how democracy and business works, actually. It should not be taboo that some people try to convince others the government service (schools or postal or electricity for example) is much worst then it is, so that they get laws they want.
This has nothing to do with independence of thought or theory. It has to do with lying about facts when it suits your business.
Historically, Enron is such example. They pushed for deregulation, intentionally created crises and then used those as argument for more deregulation.
My point is that there are many people who are philosophically opposed to regulation enforced by a violence monopoly (the government) so the default position is that all regulations need to constantly revisited and removed if they can’t be adequately defended.
It is just as likely for established mega corps to spread propaganda about the importance of the existing regulations over an industry to protect from new entrants as it is for companies to push for their removal.
However, it is outsourced to a private company and I just bet they have screwy incentives.
Carpools can't even use the HOV lane for free anymore (!!!) without purchasing a transponder and setting it to indicate such. Unbeknownst to us, a transponder broke and was deducting from the account balance when set to indicate carpool for months. It was discovered upon finally managing to empty the entire account, at which point they refused to reverse the charges because it went back too far.
0/10, would not recommend whoever designed and implemented this pile of shit. I suspect screwy incentives exist in this case as well.
It's because of long lines at the DMV. I know it's a meme, but without an appointment (and those can be months in the future), you should expect to wait at least half an hour.
The problem here isn't that the police aren't collecting such data themselves but rather that private companies are still allowed to. You're pointing to a massive loophole in the current regulations in order to argue against having any regulation at all. Instead, the loophole should be closed - I have no interest in living in a glass house dystopia.
Usually interstate sharing of DMV records is only allowed for law enforcement purposes. So a traffic camera can look up your records, but a permitting agency cannot.
Other uses are usually not allowed unless specified by statute. DMVs sell everything, and other agencies buy that data back from companies like ID.me and others.
It's not surprising there's now a big push to 'prove' that the pandemic unemployment benefits were wastefully expensive. It doesn't fit the neoliberal economic worldview that says government aid should be "need based" and have means testing. Of course the total dollar amount said to be lost to the waste is less than what the DoD spends in a day.
The most obviously agenda-driven aspect of this new pandemic fraud panic is that it directly plays on the American aversion to the helping the "losers" who didn't clear the "pulled up by one's own bootstraps" bar. It's the same rhetoric employed against student loan forgiveness and by the Tea Party, to name just a couple of examples.
Seems like a disaster waiting to happen.
Worse, ID.me's privacy policy (https://www.id.me/privacy) states: The Service and Website offer eligible Users who create an account with an electronic identification resource (or “ID.me Account”) that allows eligible Users to verify their status as a member of an affinity group create accounts with websites that use the ID.me Account and access certain exclusive benefits, including without limitation, deals, discounts, cash back rebates and employment and educational opportunities, offered by participating retailers, service providers, employers or benefits administrators (collectively, the “ID.me Service”)
They also run a shop at: https://shop.id.me/
I suppose the issue is that not everyone who collects unemployment necessarily has an ID card, and that someone with an ID card doesn't necessarily have a current mailing address (someone might be homeless or couch surfing for example). It seems like a fairly straightforward solution would be to have those people physically come in to a local licensing office.
But that would introduce accessibility issues for many (the most disadvantaged would be the most inconvenienced), hence facial recognition and video chats, but apparently the state couldn't be bothered to build out it's own system for that?
A much better solution would be to just put PKI chips into ID cards. US passports, the US DoD, many other countries, and the vast majority of credit cards have this at this point. Why not state issued photo IDs? I have no idea.
Oh yeah, and most states send unemployment electronically to a bank account. So it seems like you could just require the account to be with a bank that operates in the US and thus already complies with our rather extensive KYC laws. I have no idea why the banks themselves couldn't be used to vet their customers here.
On the whole I'm completely unimpressed.
This is something that can totally be handled by private orgs.
But it has to actually be done!
> A rapidly growing number of US states, including Colorado, California and New York, turned to ID.me in hopes of cutting down on a surge of fraudulent claims for state and federal benefits that cropped up during the pandemic alongside a tidal wave of authentic unemployment claims.
This ID.me company doesn't sound great at all. Although the government doesn't always have a track record of efficient software development, I wish they would work on developing a different solution for verifying identities remotely.
There is a similar problem with people filing fraudulent tax returns using stolen identities. Fraudsters are loving this shift to remote filing because it bypasses the need for creating a fake photo ID and risking walking into a building. These new remote-only systems only require some personal information to allow someone to file fake taxes under your name or steal unemployment benefits. They get to walk away with the money and you're left to deal with the consequences.
Can anyone share how other countries are handling remote ID verification? As more services go remote, we're going to need better ways to verify people's identity remotely. Passing the problem to companies like ID.me doesn't sound like a great solution.
Nearly all credit cards have PKI chips in them at this point. US passports and US DoD ID cards do as well.
Most (all?) unemployment claims pass through a bank account; the bank is required to adhere to KYC laws.
Sensible solutions exist but for some reason we're outsourcing to a shady operator in the private sector instead.
No Aadhar? No govt service. Almost.
Remote ID verification done by : OTP sms to phone number linked to Aadhar of the person.
This sounds reasonable given the current situation. Washington state alone lost ~1b to fraudulent claims during the pandemic (that's almost $3000 per taxpayer). If you are going to allow people to file online, you absolutely need to verify their identity.
That being said. Verifying by mailing address or in person seem more effecvive, fraud resistant, auditable, reliable, don't rely on a contractor etc.
Unfortunately it seems thay many of the pandemic era "temporary" solutions are simply going to become the norm because of inertia.
$1_000_000_000 in claims
7_615_000 WA state population
1_000_000_000 / 7_615_000 = 131.319763624 $/person
Wild. Where did you see that?
www.seattletimes.com/seattle-news/auditor-state-unemployment-system-wholly-unprepared-for-fraud-one-agency-employee-under-criminal-investigation/%3famp=1
I'm surprised they'd bother with facial recognition as it's a downgrade generally from fingerprints and fails the "twin test." The article doesn't really explain the impetus for using facial recognition.
I think people are saying they shouldn't be forced to expose themselves to a private, for-profit organization without, at least, some very strong legal safeguards.
These 3p processors basically get to write arbitrary law, gatekeeping public benefits.
It's utter bullshit and should be illegal.
You shouldn't have to agree to arbitrary private company TOS to access the things your tax money has already paid for.
https://esd.wa.gov/newsroom/alerts/SAO-announces-cyber-secur...
Noteworthy. This is not Clearview taking a face and returning a name, this is a service taking video and an ID photo and returning a boolean.
No one would be shocked if a clerk in a government office asked for an ID and looked at his face before approving unemployment benefits. Providing access to benefits over the internet is a strict improvement, pandemic or no, but it doesn’t seem unreasonable to subject people to a similar level of identity verification.
They might, though, if a clerk in a government office asked them to hand a copy of their ID to, and have a video taken by, the proprietor of a random private business next door that has a weak privacy policy, before approving unemployment benefits.
I'm glad retail stores can't figure out whom I am.
My allergies are better too.
I was the odd ball guy who wore a mask before Covid when doing most stuff outside though.
I am prepared for retail saying no to masks though. They will claim security, or some other reason.
I would like to see a federal law stating a person can wear a mask anywhere, at anytime, with obvious common sence exceptions, like DMV, and I guess international flights?
There is another law for air carriers, and the Rehabilitation Act and the Americans with Disabilities Act does not apply once you enter an airport. For airlines/airports/flights the law is called the Air Carrier Access Act, and it applies to flights to and from the US. In that case, you may need a note from your doctor.
Look at right to work states where you can be fired for any reason. It’s still illegal to fire on the basis of disability.
https://www.sarabmoura.com/wp-content/uploads/2020/06/7d2914...
I figure there are still a lot of Greek Alphabet letters left for Corona that will give me at least a decade to continue to wear the mask without looking crazy.
We shouldn't have to wear costumes, especially in America?
1 https://github.com/BruceMacD/Adversarial-Faces
2 https://towardsdatascience.com/fooling-facial-detection-with...
http://objectsinfilm.blogspot.com/2015/04/object-13-scramble...
That's news to me. I've seen their flexible displays being updated while being bent 10 years ago, shape sensing. https://www.youtube.com/watch?v=ol_uu5pMmq8 Is there some information we can read about your claim?
But, for example: https://www.adafruit.com/product/4262
> Please note: this display is flexible but that doesn't mean you can constantly flex it.
> These displays should not be flexed/moved during a display update, you'll get odd effects.
> Continuously flexing it will eventually damage the display.
> There's no specification for how many times it can be flexed, so keep it minimal!
And therefore, I suspect there will be a lot more cold and flu cases this winter than last.
Somewhere I think I read something about how masks probably prevented 40,000 flu deaths. It makes the comments about how "covid-19 is no worse than the flu" seem particularly ironic.
I get that if you don't have any such scheme, it can hard to verify that anyone is who they say they are.
In 2008 I reported address change online without any verification, in 2013 it required using an ID system with 2FA. I'm personally rather happy to know that scammers can't change my address anymore.
There has to be something better.
In today's world, the short answer is probably that there should be an iOS and Android app. That probably would have a higher average success rate than a desktop computer.
Or, at the very least, some reasonable method to prove your identity without having to use something like ID.me.