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Re:Scammers siphoned $36B in fraudulent unemployment payment... by zaroth on Wednesday December 30, 2020 @03:34PM (#25585764)
I'm well aware of the common cognitive dissonance whereby a system which you are not familiar with seems like it should be trivial. But I'm having a hard time understanding where the complexity of these systems actually lie.

State and Federal employment records already exist with your social security number, address, employer address, employer ID number, and amount of taxes that have been withheld. I can retrieve my own copy of this record online from the IRS and my own state relatively easily.

Someone should not be able to [automatically] claim unemployment benefits for past income on which taxes have not been withheld, or estimated taxes have not been paid. That seems trivially fair. Even people making minimum wage will have payroll taxes withheld. Calculating an upper limit on the amount that can be processed automatically should therefore be trivial.

Next is the question of where to send the payment. DMVs cover a large percentage of the population. Beyond the DMV, there's voter registration, credit reports, address of record for where the last tax refund was sent, utility bills, phone records.

When I had a larger than typical refund last year, my state sent me a letter asking for copies of my and my wife's social security cards, passports, and utility bills before they would issue the refund. I felt that was pretty burdensome considering I was requesting the refund to the same exact bank account number which I had been paying them from for the last 5 years.

It's obvious the state is just totally incapable of running even the simplest of validation rules. It's just helicopter money dropping from the sky, and they don't really care who gets it, because it's not their money. It's not like anyone is going to lose their job or not get re-elected because of it.

The fact that's it's so easy to funnel all this money out of the country is a pretty wild indictment of FinCEN and the like.

Re:Scammers siphoned $36B in fraudulent unemployment payment... by treis on Wednesday December 30, 2020 @04:02PM (#25586066)
>I'm well aware of the common cognitive dissonance whereby a system which you are not familiar with seems like it should be trivial.

I build these sorts of things and while it's not trivial it's also really not that hard. It's just insane the amount of money the government will spend on crap.

The field I work in is pretty small and I know a decent amount of the developers that use it. One project I worked on for the government, I showed up on day one and ran into a few people that had either no desire or no ability to do development work. And they were in team lead/senior roles.

Then, come to find out that you can't do anything for the project until you have a background check. And, by anything, I mean anything. No meetings, e-mails, or anything with an armed guard enforcing it. So there was an office full of people billing out at $200+ an hour for months doing literally nothing.

Then, come to find out that the way they wanted the software couldn't do. Like within an hour of hearing the requirements and what they were building I knew that it (1) wasn't possible and (2) the design they chose had fundamental flaws. Several years of effort and 10s of millions of dollars later they gave up on it.

The government is just a big whale too dumb, corrupt, and/or lazy to defend itself while a gigantic swarm of consultants/vendors are ripping off hunks of its flesh like the sharks they are.

Re:Scammers siphoned $36B in fraudulent unemployment payment... by oivey on Wednesday December 30, 2020 @04:28PM (#25586328)
I think the public focus on cost has paradoxically led to this situation. If you’re a good engineer, why work for the government? The compensation is extremely poor compared to industry, especially in tech. The lazy/incompetent people at the top have remained there because they’re too lazy/incompetent to leave for much greener pastures. If you fired them, their replacements will be at least as bad (on average, there are some passionate and competent people), since now the pay is poor and evidently there isn’t even job security.

We’ve built a system where we refuse to pay public servants. We shouldn’t be surprised when a system designed to attract below average people leads to projects with below average results.

Re:Scammers siphoned $36B in fraudulent unemployment payment... by bladegash on Wednesday December 30, 2020 @04:42PM (#25586509)
Have you ever worked on a federal contract? The compensation really is not poor, unless you’re comparing it to say FAANG compensation, which is not really normal. They make as much, if not more, than current market rates.

There is significant job security (contract with three year period of performance is essentially guaranteed work for 3+ years), annual bonuses, etc.

The idea propagated by many here that engineers who work as government contractors are somehow less than is nauseating and untrue. Believe it or not, a whole world of talented people exists outside of the bubble you live in.

Yes, there are bad apples, as with every industry, and we are all just throwing out anecdotes, but the vast majority of people I worked with in government were A) hard workers, and B) overqualified for their positions, and C) highly educated/talented.

Re:Scammers siphoned $36B in fraudulent unemployment payment... by jcranmer on Wednesday December 30, 2020 @05:23PM (#25586921)
> Have you ever worked on a federal contract? The compensation really is not poor, unless you’re comparing it to say FAANG compensation, which is not really normal. They make as much, if not more, than current market rates.

I think there is a disconnect here. Public employees--people who are actually employed by the government--have fixed, low salaries (relative to the tech sector). Contractors for the public sector--people employed by private companies--actually have pretty decent salaries. These two sets of people are different categories, but a lot of people hear "government" and may be failing to realize the distinction between actual government employees versus contract employees.

Re:Scammers siphoned $36B in fraudulent unemployment payment... by bladegash on Wednesday December 30, 2020 @05:34PM (#25587034)
It is very rare that the government hires engineers outside of contractors. I would argue compensation really is not that bad even for public employees (I was a GS federal employee, work in private sector now). A couple of years in, you essentially have a job for life, more than fair compensation, pension, 401k matching, etc. BLS' estimate of average salary for a software engineer is 107k per year. It is not all that challenging to make that much as a government employee in the DC area (GS-13 step 2 is about what is comparable).
Re:Scammers siphoned $36B in fraudulent unemployment payment... by oivey on Wednesday December 30, 2020 @05:44PM (#25587143)
GS-13 is a significant amount of experience and 107k isn’t a competitive wage for an engineer of that experience level, especially in tech.

How can the government provide adequate technical oversight of its contractors if it doesn’t hire engineers? Answer: it can’t, and you can routinely see the results.

Re:Scammers siphoned $36B in fraudulent unemployment payment... by bladegash on Wednesday December 30, 2020 @05:46PM (#25587167)
GS-13 is possible within two years of experience and depending on the agency, sometimes quicker. Yes, I can personally attest to this and it will depend on the agency. To reiterate though, outside of a few agencies, most engineers in government are contractors, not civilian employees. Their compensation is much higher.
Re:Scammers siphoned $36B in fraudulent unemployment payment... by oivey on Wednesday December 30, 2020 @06:23PM (#25587538)
Just to be clear, GS-15 is the absolute highest pay grade for regular federal employees. A GS-13 is supposed to require at least a Masters and a GS-14 a PhD. If you got 13 after a year, you have very little potential growth for the rest of your career. $107k really is not a very high wage relative to the labor market for high end engineers, especially in tech.

Again, why would a good engineer work for the government? If the government can’t and won’t hire engineers, how can they create informed requirements for contracts or provide technical oversight of their contractors? You can see this playing out in boondoggle after boondoggle. The government poorly specifies a contract, a contractor bids on the contract, the government changes requirements over and over because the lack of technical expertise implies they have no idea what they want, the contractor rakes in tons of money due to direction changes, and eventually the contractor delivers something shitty because the people at the government also had no idea how to evaluate whether the contractor was meeting milestones.

Re:Scammers siphoned $36B in fraudulent unemployment payment... by bladegash on Wednesday December 30, 2020 @06:36PM (#25587648)
Ok, just to be clear, a GS-13 is comparable to a masters and a GS-14 is comparable to a PhD IF you are using education as your sole means of qualifying for the position. I was hired as a GS-11, promoted to GS-12 after one year, GS-13 after another, received two qualified step increases the year after, plus a regular step increase. So in a matter of three years, I was effectively promoted six times. Once you are on a career ladder there are no education requirements.

In terms of GS-15, their pay goes up to 170k, so its not like GS-15 step 1 is the end of the road. Federal employees have also been receiving above-inflation pay raises and COLA adjustments the last few years.

So why would a good engineer work for the government? Honestly, if pay is your only metric you use to choose your place of employment, then I would not expect them to. However, as I have mentioned, there are plenty of people in the world who choose their place of employment based on many factors other than compensation.

Is government work frustrating? Sure. I'm sure the same can be said of for the engineer developing a CRUD application and has a shitty senior engineer overseeing them. Government work can also be incredibly rewarding and unfortunately, the majority of the time you only hear about the government failures instead of its successes. The federal government issues in excess of 500 billion in contracts per year...I assure you, there are successes in there and I have seen some federal agencies that have implemented acquisition processes and development practices that are competitive with some SV companies.

Re:Scammers siphoned $36B in fraudulent unemployment payment... by oivey on Wednesday December 30, 2020 @07:26PM (#25588062)
Not everyone is driven by money, but I think its fair to say that most people would take a job in industry where you can make 2-3x over a government job. I think this is born out in your own admission that it is very rare for government to hire engineers. Above inflation / COLA pay raises are table stakes for good engineers. If a good engineer in industry has only managed to get COLA pay raises over the last 5 years, they should quit.

I've not claimed that government can't do anything right, and I strongly believe in government. I do however believe that current public policy is designed to cause government to fail. Lots of contracts in that yearly $500 billion are successful, but things like the F-35 program, the Littoral Combat Ship, the Space Launch System, Healthcare.gov, the fuck ups in this article, and more are big enough that they eat pretty significantly into that $500 billion budget. The government has some serious issues procuring engineering work. Some pork politics certainly contribute, but lack of technical expertise at federal agencies is, I think, a significant factor.

Re:Scammers siphoned $36B in fraudulent unemployment payment... by bladegash on Wednesday December 30, 2020 @08:19PM (#25588450)
I don’t agree with you that it is safe to say if people could make 2-3x more money they would take the opportunity. It is equivalent to saying people who become teachers, who make far less than most professions of similar educational requirements, would jump at an opportunity to make 2-3x the pay or are somehow incapable of performing comparable functions. It’s just not true.

I should probably clarify that there are some federal agencies that hire engineers as federal employees. For example, NSA, NASA, JPL, etc. To your point, they do have better success when it comes to engineering. However, they are also agencies that have a primary mission/function which requires it. For other agencies, it’s not all that easy for them to justify career engineering employees when the roles are tertiary functions. It’s not to say they don’t have them, but it is to say that they have far less of that expertise. That is why entities such as 18F and USDS exist though, to help fill that role.

While it seems like you are not keen on giving it a try, I highly encourage you to give government work a shot even if only on a temporary basis with somewhere like USDS or 18F. Only way to help make positive changes to the way government does business is through people with the drive and talent to do so. There is plenty of opportunity to influence those types of changes, even at lower ends of the employment hierarchy.

Appreciate the conversation and you offering your perspective!

Re:Scammers siphoned $36B in fraudulent unemployment payment... by sdenton4 on Wednesday December 30, 2020 @05:12PM (#25586792)
/[...]not really normal[...]/

Well, there's probably 100-200k engineers combined working at FAANG jobs, who have the option of the FAANG salary or the government salary. FAANG pays so /many/ paychecks that the expectation really is that high for people who can pass a FAANG interview. There are a lot of people who /can/ pass the interviews but choose not to, effectively taking a pay cut to go work on things they're passionate about; only a few of these end up working in 'boring' parts of government. The US Digital Service was meant to make it a broader/better path, though.

Your people description (B) is worth considering, too: I (personally) am unlikely to take a job I think I'm 'overqualified' for unless it's in a specific problem area I really, really care about. And 'overqualified' sounds near synonymous with 'few growth prospects': if the opportunities are there, why haven't they been taken? And if they aren't, why should I take a pay cut to work in a space with fewer opportunities for growth?

Re:Scammers siphoned $36B in fraudulent unemployment payment... by bladegash on Wednesday December 30, 2020 @05:22PM (#25586910)
The level of compensation is not normal for engineers, that was the point I was making. There are a lot of talented engineers out there who A) have zero interest in working for a FAANG, B) are perfectly talented, C) have jobs that pay just as well. Yes, that applies to those in government too.

In terms of qualifications, people have different things that motivate them to work in certain fields/jobs. People value things other than money as well, such as power and influence, ability to impact change at scale few organizations can match, feelings they are contributing to a meaningful mission/cause, etc. It's not just about money and overqualification is many times because of the way career ladders work in government and the educational, training, internship opportunities the government pays/provides for that you are unlikely to experience in the private sector. Government will sponsor employees to work an internship in the U.S. Senate for 2+ years, or attend a postsecondary education at Georgetown/Harvard/GWU, etc. Not just for senior level employees, for mid-career ones.

Re:Scammers siphoned $36B in fraudulent unemployment payment... by oivey on Wednesday December 30, 2020 @05:06PM (#25586727)
Government is competing with FAANG for employees. There isn’t a good reason to exclude them from comparison. Even so, working for a startup without equity is often more lucrative than working for the federal government. The situation is even worse at the state and local level where you also have to fear your pension being raided via government bankruptcy.

I’m talking about actual government employees, not contractors. The actual government employees who manage those contracts are not paid well. You can see the results of this too in things like the F35 program where the government had no idea what it wanted and repeatedly redirected and added crazy requirements (to be fair, Lockheed is also incompetent).

You’re right though, painting even a majority of public employees as incompetent isn’t fair.

Re:Scammers siphoned $36B in fraudulent unemployment payment... by bladegash on Wednesday December 30, 2020 @05:29PM (#25586990)
Government employees who manage contracts can be paid very well, depending on their grade. A GS-14 makes over $120k base, with pension, significant healthcare contribution, etc. A GS-15 is $152k base. I get that that may not seem like much, but it is 2-2.5x the median household income in the US.

Aside from that, a contract manager/Contract Officer is typically not an engineer and if you're lucky, may be someone that can fill more of a product owner role. It's not really comparable in those terms.

F35 really isn't a great example of poor engineering talent, that is an example of a crap acquisition strategy in general and was pretty much destined to be problematic from the start due to politics, conflicting/competing requirements, etc. You could have hired the best engineers in the world and they would have likely ended with the same results, because the majority of the issues with the F35 had little to do with engineering.

Re:Scammers siphoned $36B in fraudulent unemployment payment... by jjeaff on Saturday January 02, 2021 @01:35AM (#25610900)
I had a friend that was a fracking engineer and made big bucks working on drilling sites. Constant travel, awful hours, "culture" of working all the time.

He took a big paycut to start working for the state government but he has good benefits, good retirement, and normal hours that you can actually raise a family with. And while all of his peers have scattered the nation looking for jobs when natural gas prices crashed, he's still sitting pretty with his same steady job.

So there is a lot more than just salary to working for the government.

Re:Scammers siphoned $36B in fraudulent unemployment payment... by Kalium on Wednesday December 30, 2020 @08:40PM (#25588605)
> Have you ever worked on a federal contract? The compensation really is not poor, unless you’re comparing it to say FAANG compensation, which is not really normal. They make as much, if not more, than current market rates.

Yes. It was OK pay, but not better than market. Annual bonuses weren't a thing. There was no path for career advancement beyond senior engineer. The supposed stability was not nearly as good as you describe.

There's a bunch of reasons I stopped doing defense contracting.

Re:Scammers siphoned $36B in fraudulent unemployment payment... by ampdepolymerase on Wednesday December 30, 2020 @04:50PM (#25586576)
I don't doubt they are hard workers and intelligent. But if OP is judging them by SV standards of talent then it's not exactly fair. Building a successful company requires a certain drive, risk appetite, and revolutionary zeal that are not easily found in government (and to a lesser extent, academia). There are smart people everywhere but most would never make a significant impact.
Re:Scammers siphoned $36B in fraudulent unemployment payment... by bladegash on Wednesday December 30, 2020 @04:56PM (#25586626)
It requires a difference of priorities and ambitions. What draws people to the DC area is not the same as what draws them to SV. It’s not a disparity of capability. Aside from that, your point really is not accurate. There are plenty of companies and entrepreneurs users in the DC area that generate FAR more value and revenue than SV startups. Take a look at the wealthiest counties in the US. Loudoun County and Fairfax County have been the top of that list for a while. Or Montgomery County for that matter.
Re:Scammers siphoned $36B in fraudulent unemployment payment... by ampdepolymerase on Monday January 04, 2021 @03:14PM (#25637218)
Would you truly consider old money, government regulatory capture/lobbying and defence to be in the same category as startups? They are completely different types of innovation. There job is done once a specific policy is achieved. Overarching changes to the system is often not their priority.
Re:Scammers siphoned $36B in fraudulent unemployment payment... by oivey on Wednesday December 30, 2020 @05:25PM (#25586938)
Most tech employees in even in the valley aren’t founders or early employees risking it all. There is probably some element of drive for commercial products or something but I think you’re vastly overestimating the degree to which that is a factor vs compensation.
Re:Scammers siphoned $36B in fraudulent unemployment payment... by treis on Wednesday December 30, 2020 @04:37PM (#25586444)
It's not the amount of pay. It's that results (good or bad) don't really impact your salary. Nobody missed a bonus for the project failing and nobody would have gotten one for it succeeding.

The consultants have even worse incentives. The better they do the less they get paid. Meaning, it's better for them if the project drags on than delivering something on time.

Re:Scammers siphoned $36B in fraudulent unemployment payment... by the-pigeon on Wednesday December 30, 2020 @04:46PM (#25586546)
This is a very common myth in business.

Bonuses in most situations lead to a decrease in productivity.

https://hbr.org/1993/09/why-incentive-plans-cannot-work https://smallbusiness.chron.com/bonuses-affect-employees-wor... https://hbr.org/2017/03/research-how-incentive-pay-affects-e...

There's a ton of research out there on this. To simplify it basically if someone is doing mindless work like putting a cap on a bottle on an assembly line, then bonuses increase performance in the long term. But if they are doing complex work like writing software they decrease performance in the long term.

Re:Scammers siphoned $36B in fraudulent unemployment payment... by DethNinja on Wednesday December 30, 2020 @04:35PM (#25586419)
Is it really true that government jobs pay less than their private counterparts? In Canada government jobs are actually provide far more compensation than private ones but I guess it might be different for USA.
Re:Scammers siphoned $36B in fraudulent unemployment payment... by jcranmer on Wednesday December 30, 2020 @05:34PM (#25587041)
In the US, actual public employees (not contractors!) are generally required to be paid according to the GS payscales: https://www.opm.gov/policy-data-oversight/pay-leave/salaries...

A GS-9, which is roughly a freshly-minted graduate with a Master's degree, starts at $45k/year, growing to about $60k/year (although this is also adjusted by locality). This is well below prevailing tech sector rates.

Re:Scammers siphoned $36B in fraudulent unemployment payment... by DethNinja on Wednesday December 30, 2020 @06:03PM (#25587352)
Thanks for the data, yep that’s pretty bad.
Re:Scammers siphoned $36B in fraudulent unemployment payment... by ric2b on Wednesday December 30, 2020 @04:46PM (#25586548)
I don't see how your argument fits the situation, the government is clearly not focusing on costs if it's wasting millions of dollars on obviously not viable projects and paying consultants $200/h to sit around for months waiting for a security clearance...
Re:Scammers siphoned $36B in fraudulent unemployment payment... by oivey on Wednesday December 30, 2020 @07:41PM (#25588186)
There's definitely a focus on cost. It is just misguided. Short of not having security clearances, I'm not sure how you can avoid paying people to wait for them. Simple projects, like properly paying people unemployment benefits, have become not viable for the government to execute. There are many reasons why this has happened, but I think the erosion of technical expertise in the government is a big contributor. Rather than paying market rates for engineering talent, the government hires a bunch of individually cheaper non-engineers to oversee technical projects. The government could save a lot of money by hiring a handful of competent engineers rather than a ton of nontechnical management.

Relatedly, I think the government could probably save a ton of money with some in house technical talent to execute basic projects like the systems in this article rather than going through the crazy procurement process. It isn't clear to me that contractors are providing any added value to justify the added cost for their profit.

Re:Scammers siphoned $36B in fraudulent unemployment payment... by jvanderbot on Wednesday December 30, 2020 @05:28PM (#25586977)
Step 1: Fire all engineers on government money, to decrease "overhead" and let "industry" do it

Step 2: Parent post

Step 3: Government is inefficient, inept, if not outright corrupt, we must gut it further! Goto Step 1.

The other day I was getting data from the USGS, and it was remarkable how well structured, sorted, searchable the data was, how it came in high quality, with a custom-built downloader applet that worked very nicely actoss multiple machines. I went from zero to complete solution in QGIS in one day. It's not all that bad.

Re:Scammers siphoned $36B in fraudulent unemployment payment... by sdoering on Wednesday December 30, 2020 @04:08PM (#25586138)
The saddest thing I witnessed were consultants like you describe bragging about how easy it is "to milk the cow" (to quote one). They bragged that they never earned their bonus in such an easy way.
Re:Scammers siphoned $36B in fraudulent unemployment payment... by shwoopdiwoop on Thursday December 31, 2020 @10:31AM (#25593520)
“There are four ways in which you can spend money. You can spend your own money on yourself. When you do that, then you really watch out what you’re doing, and you try to get the most for your money.

Then you can spend your own money on somebody else. For example, I buy a birthday present for someone. Well, then I’m not so careful about the content of the present, but I’m very careful about the cost.

Then, I can spend somebody else’s money on myself. And if I spend somebody else’s money on myself, then I’m sure going to have a good lunch!

Finally, I can spend somebody else’s money on somebody else. And if I spend somebody else’s money on somebody else, I’m not concerned about how much it is, and I’m not concerned about what I get. And that’s government.” -Milton Friedman

Re:Scammers siphoned $36B in fraudulent unemployment payment... by voodootrucker on Wednesday December 30, 2020 @04:29PM (#25586336)
I also worked on a state unemployment system, and it was much the same. Took a couple weeks to get my laptop, but I still had to come in and sit in a chair and read the physical newspaper. When it did arrive, it took the better part of an hour to run the build.

That was the last government work I ever did. I lasted about 3 months.

Re:Scammers siphoned $36B in fraudulent unemployment payment... by staplers on Wednesday December 30, 2020 @04:08PM (#25586134)
This means that ultimately, all tax-paying citizens are that whale. Even the very consultants/vendors doing it.
Re:Scammers siphoned $36B in fraudulent unemployment payment... by dmm10 on Wednesday December 30, 2020 @04:17PM (#25586221)
Oroboros
Re:Scammers siphoned $36B in fraudulent unemployment payment... by mrkurt on Wednesday December 30, 2020 @04:40PM (#25586479)
The system is intentionally complex and high friction, like most social programs in the US. We spend a lot of time trying to make sure people who "don't deserve" help can't get it. It's a political win for both parties.
Re:Scammers siphoned $36B in fraudulent unemployment payment... by lazyjeff on Wednesday December 30, 2020 @07:17PM (#25588001)
The tricky part is as a society, we haven't trained many people for jobs where you build sociotechnical systems: processes and systems that have a major human element in it, and a major automated/computation element in it.

We have computer scientists who can make robust pure software systems with theoretical guarantees, and work well at scale. And we have political and administrative professionals who can converge on decisions and policies with actors with different motivations and rationality. But it's hard to do both really well at the same time, especially on the first try.

Re:Scammers siphoned $36B in fraudulent unemployment payment... by throwaway0a5e on Wednesday December 30, 2020 @04:41PM (#25586493)
The government intentionally diffuses responsibility for all the same reasons corporations do.

The government does not have much incentive to work efficiently because of use it or lose it budgeting. You ever notice how you only ever see stories of efficiency coming from cash strapped departments and poor cities? This is why

We don't want the government to have all the databases interlinked. There's too much potential for abuse and when you're talking about state or nation scale programs your "rare" edge cases result in tens of thousands or millions of people being shafted.

Re:Scammers siphoned $36B in fraudulent unemployment payment... by j_walter on Wednesday December 30, 2020 @04:18PM (#25586235)
You would also think that an unemployement claim might have a red flag thrown if it's still reporting unemployment taxes because the person is still working. My company had many individuals that were notified the state had been paying out claims in their name...but they had been receiving paychecks the entire time. Washington had an auto-accept policy without any verification until things could be verified, but by that time hundreds of millions were gone.
Re:Scammers siphoned $36B in fraudulent unemployment payment... by maxerickson on Wednesday December 30, 2020 @04:10PM (#25586158)
It's ~$100 per US resident. Given how much bigger the economy is than that, how much money moves in and out of the country per year?

Which isn't to say that automated systems couldn't catch more of it, I just wonder what the scale is.

Re:Scammers siphoned $36B in fraudulent unemployment payment... by ajmadesc on Wednesday December 30, 2020 @05:47PM (#25587174)
Florida's unemployment system was build to fail.

https://www.theguardian.com/us-news/2020/apr/15/florida-unem...