ID.me Criticized by House Committies for 'Baseless' Unemployment Fraud Data

ID.me, a biometric firm used for identification verification, has been subjected to investigation for claiming inaccurate figures. The firm was also accused of incompetence, for its services subjecting its users to long waiting times. The data provided by ID.me has been deemed misleading for the public and lawmakers, as mentioned by Gizmodo.

Complaints Against the Firm

The House Select Subcommittee on the Coronavirus Crisis, as well as the Committee on Oversight and Reform, expressed their disappointment toward the firm. Blake Hall, The CEO of ID.me, stated that the fraudulent unemployment claims cost the US around $400 billion.

The former accused it of providing claims about COVID-19 unemployment fraud that were baseless, and that it was an attempt to increase demand for their services. It was said that the firm actually made it harder for the unemployed to receive assistance.

They added that it was disappointing how instead of helping with the process, they have actually hurt the ability of its users to access critical relief. It was also mentioned that the company has been provided with tens of millions of dollars, which came from American taxpayers' money.

Face Scan
Young man using facial recognition technology with laptop - stock photo young man using facial recognition technology with laptop Getty Images

According to reports, some people who used the service had to wait long hours to verify their identity. Users who didn't have devices to perform face scans had to wait for up to ten hours just to participate in a video call, wherein the company would verify their identity. This can be a problem for those who don't have unlimited internet access or a smartphone.

Studies from Pew Research show that people who need unemployment assistance, tend to be from low-income and rural communities. That means that inefficient assistance is causing problems for those who need unemployment benefits the most.

The company has removed the ability for users to schedule appointments, saying that it was hindering efficiency. When the firm was accused of long waiting times, they did not deny it. However, they blamed it on what they claimed to be a huge amount of fraudulent activity.

ID.me provides its services to 21 state governments, which aims to give unemployment benefits to those who need them. Reports say that 14 of those states that used the verification service, had users that experienced bad service. They had to wait around for four to ten hours for video verification, back in April 2021.

Where's the Evidence?

When asked for proof of their accusation, they gave estimates from Heritage Foundation. The Committees dug deeper and realized that the foundation got the claims from ID.me. To put it simply, the firm tried to justify their accusation, using their own claims.

Many states admitted that there have been cases of fraud, but not to the extent that Hall suggested. The Department of Labor, Office of Inspector General, conducted an analysis, which put the numbers at $45.7 billion. This is exponentially lower that what ID.me CEO Blake Hall claimed.

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