COLUMBUS, Ohio (AP) With the floodgates set to open on another round of unemployment aid , states are being hammered with a new wave of fraud as they scramble to update security systems and block scammers who already have siphoned billions of dollars from pandemic-related jobless programs.

The fraud is fleecing taxpayers, delaying legitimate payments and turning thousands of Americans into unwitting identity theft victims. Many states have failed to adequately safeguard their systems, and a review by The Associated Press finds that some will not even publicly acknowledge the extent of the problem.

The massive sham springs from prior identity theft from banks, credit rating agencies, health care systems and retailers. Fraud perpetrators, sometimes in China, Nigeria or Russia, buy stolen personal identifying information on the dark web and use it to flood state unemployment systems with bogus claims.

The U.S. Justice Department is investigating unemployment fraud by transnational criminal organizations, sophisticated domestic actors, and individuals across the United States, said Joshua Stueve, a spokesman for the departments criminal division.

The Labor Department inspector generals office estimates that more than $63 billion has been paid out improperly through fraud or errors roughly 10% of the total amount paid under coronavirus pandemic-related unemployment programs since March.

Were all learning that there is an epidemic of fraud, said U.S. Rep. Kevin Brady of Texas, the ranking Republican on the Houses powerful Ways and Means Committee. Brady said the $63 billion estimate is larger than the entire budget of the Department of Homeland Security.

These are frightening levels of fraud, he said.

California has been the biggest target, with an estimated $11 billion in fraudulent payments and an additional $19 billion in suspect accounts. Colorado has paid out nearly as much to scammers an estimated $6.5 billion as it has to people who filed legitimate unemployment claims.