States are scrambling to update security systems as another round of unemployment aid is on the horizon. Identity theft and unemployment fraud has risen to record highs, and often times the fraudulent payments cause a delay for those with legitimate requests. Threat actors purchase stolen identify on dark web marketplaces in order to apply for the pandemic relief and unemployment. The U.S. Justice Department is investigating fraud by transnational criminal groups as well as sophisticated domestic threat actors. Labor Department officials estimate that over $63 billion USD has been improperly paid, the sum of which is more than the entire budget for the Department of Homeland Security. Despite the huge increase in fraudulent payments, State agencies are still are not taking the necessary precautions to prevent fraud.  In a report from the Department of Labor, 22 of the 54 state and territorial workforce agencies are not using the data  from the recommended data exchange run by the National Association of State Workforce Agencies which prevents the same Social Security number from being used in multiple state unemployment applications. The Department of Justice has made several unemployment fraud arrests and has set aside money in order to hire more prosecutors aimed at fighting back against fraud.