The New York State Department of Labor is on track to pay out more than $110 million in fraudulent unemployment insurance claims in 2022. An upgraded fraud detection system has identified more than $11 million in benefit payments made in August 2022 alone.
Many of these fraudulent claims are made by individuals who were working while simultaneously collecting unemployment insurance payments, taking much-needed resources away from truly unemployed New Yorkers.
The Department of Labor has announced its dedication toward exposing this fraud, taking hard action against those making fraudulent claims. Any individual found to have made a fraudulent claim is required to return all unemployment payments received; those who refuse repayment are reported to law enforcement for necessary further action.
With the exponential increase of unemployment insurance claims resulting from the COVID-19 pandemic, these funds became a necessary lifeline for many. Those committing fraud are stealing from proper recipients and the businesses that pay the funds to support the program, and they must be held accountable.