The US Department of Labor has announced $100 million in funding will be provided to States in order to combat UI fraud and recover improper unemployment benefit payments.
The Employment and Training Administration has published UI Program Letter 28-20 outlining strategies to help states improve their anti-fraud operations. The massive increase in the number of unemployment claims filed this year has also led to an increase in fraudulent claims.
States are encouraged to utilize the new funding to expand and improve their UI fraud prevention efforts, and use the UI Integrity Center resources to assist in doing so. The USDOL’s Integrity Data Hub is a secure system to cross match data and assist States in identity verification, a key tool to detect and prevent fraud.
According to Secretary of Labor Eugene Scalia “The Department of Labor has made preventing fraud and abuse of the unemployment insurance system a top priority. State workforce agencies are on the front lines in the fight against fraud and abuse, and the funding and resources provided by the Department today will help States protect the integrity of their unemployment insurance programs.”