The increase in unemployment claims in Texas has also brought an increase in fraud.

The problem is so big that two Texas senators and a senate staffer became victims. Some people are claiming that the fraudulent unemployment was claimed in their name by getting a form from the IRS that incorrectly shows that they were unemployed.

Sen. John Whitmire (D-Houston) said, "Someone used my name, can't imagine them being brave enough to do that with all associated with trying to have my identity. "

Sen. Royce West (D-Dallas) said, "Recognized I was a victim when I got a bill from Texas Workforce Commission that said I was overpaid in terms of compensation. Frankly, I had not remembered firing myself."

The executive director of the Texas Workforce Commission said they gave almost half a billion dollars to suspicious claimants, but TWC stopped another $3 billion from getting into the wrong hands.

Ed Serna told lawmakers that some of the fraud is from overseas and some are domestic.

Serna said, "When we ID a particular computer address or domain is suspected, we simply block that."

Anomalies in banking patterns are also a red flag.

Sen. Lois Kolkhorst believes the problem maybe even bigger than what the state has identified.