Financial Insecurity and Online Scammers Arise Mid-Pandemic
As the number of COVID-19 cases began to increase in February, the stock market plummeted and people lost their confidence along with their jobs, in an effort to contain this pandemic.
"These are difficult times for me. Having to pay for classes and textbook and now this situation has brought unnecessary costs," said Santa Monica College (SMC) student and Music major Mario Rolando Acosta.
By March 16, an open letter from the scientific and medical community urged for social distancing as school and business closures kicked in. Meanwhile, the U.S. economy went into a downward spiral with numerous citizens applying to the Employment Development Department (EDD) for financial assistance.
The applications for unemployment benefits increased to an unprecedented percentage as states reported layoffs, particularly in the service, transportation and the warehouse industries, according to the online News Release from the U.S. Department of Labor.
SMC student Nicole Rocha, who works as a server said, "I was very stressed and unsure of how I was gonna continue to pay my bills."
Data from the Department of Labor reveals in the weekly Unemployment Insurance (UI) how initial claims skyrocketed, especially in the week of March 14, “an increase of 70,000,” from the prior week that marked “the highest level for initial claims since September 2, 2017.”
"Rent, utility bills cannot wait. How can you pay without a job?" Acosta said.
The UI program helps people financially during a time of unemployment, as it replaces wages temporarily, until they find a new job. As individuals apply for unemployment benefits, the EDD determines if the claimant’s request is eligible for the UI program, based on specific requirements.
Some of these requirements are: working fully or partially, became unemployed through no fault of your own, be available to accept work etc.
After an individual files an application online, UI benefits are calculated as “Standard Base Period,” or “Alternate Base Period,” which determine how much you qualify to receive. The number ranges from $45 to $450 weekly, as it is determined by the UI Benefit Calculator.
"My employer had recommended to file for unemployment... now I'm just looking for anything to make extra money. I might start doing Doordash," said Rocha.
St. Louis Federal Reserve President James Bullard estimated a possible 30 percent unemployment in the U.S. during an interview with CNN, that would be detrimental after the long and hardworking growth from the 2008 Recession.
This estimation increased the consumer's financial uncertainty and some people grabbed the opportunity to benefit from people's fears and vulnerabilities.
"My home, as for other classmates, was at the Performing Arts Center. We were a big family. We (including faculty) were very close. We are now distanced and yes, it affects me," said Acosta.
A caution amid COVID-19 is that criminals have been attempting to steal information and money by pretending to be the World Health Organization (WHO). Individuals must “stay alert and verify the authenticity,” of any requests in order for them to be safe from scammers according to WHO's website.
Moreover, as people have been looking for financial support online, the Federal Communications Commision (FCC) posted an online warning and safety tips on how to protect yourself from scammers and "online hoax text messages."
The FCC received many reports from consumers that received messages or robocalls, that offered financial relief, or even selling health insurances as they were "preying on virus-related fears," along with fake cures and test kits for the coronavirus.
This warning is meant to send an alert to everyone as the FCC clarified on their website that even if the government sends those "possible government issued checks," they will not contact anyone by phone, nor request any financial or personal information.
During the spreading virus, many uninsured people have been also seeking health coverage to protect themselves. Covered California has provided a special enrollment either through Medi-Cal or Covered California plans according to the Covered California online News Release.
By January 1, California mandated health insurance for Californians, otherwise they would face tax penalties according to Covered California.
Some exemptions apply, however, uninsured individuals, or households will be faced with the possibility of paying $695 per adult and $347.50 per child under the age of 18, according to Covered California.
Acosta said he has "insurance but this doesn't change anything. Medical attention can't be denied to someone whether they are insured or not."
Eligibility for health coverage depends on each person’s household income and the specific categories are listed under the Covered California website.
"My worry is not on the money but whether I’d receive attention or not due to emergency rooms being packed with victims of the virus," said Acosta. "Keeping in touch with professors is very important for me, especially during hard times like now."
"I worry for the people without health insurance because I've been in their shoes and I know I've been in situations where I've avoided going to doctors because of my financial situation," said Rocha.
In the midst of COVID-19 pandemic, filing for unemployment, acquiring health insurance and being aware of illegitimate sources, may reduce the sense of insecurity during uncertain economic slowdowns.
Additional places to check for financial relief:
Core Children of Restaurant Employees