Those who during the darkest days of the pandemic, and even this year, cheated and participated in fraudulent schemes to collect thousands of dollars in unemployment insurance (Unemployment Insurance Benefits), should keep in mind that sooner or later, the arm of justice will reach them. And in the best of scenarios, they will be forced to return the money collected, through some irregular means.
Governor Kathy Hochul announced this week a crackdown on unemployment insurance fraud, after that a New York State Department of Labor (DOL) investigation uncovered a massive insurance fraud involving more than $11 million in payments of these benefits only in the month of August.
The state government announced that it will seek reimbursement of fraudulent benefit payments at all costs.
Based on this investigation, the Department of Labor’s Office of Special Investigations is on track to discover $110 millions in benefits obtained fraudulently, this year alone.
“At the height of the pandemic, when our state experienced an unprecedented unemployment crisis, this is Unemployment insurance scam took resources away from New Yorkers who needed them most,” said the state president.
New fraud detection system
DOL identified fraudulent payments using an updated fraud detection system. The process allows investigators to review cases more efficiently and expedite record requests to employers to confirm dates of employment. If the system detects a fraudulent payment, the claimant will have an opportunity to explain the discrepancy.
After review, if it is determined that the claimant worked while collecting benefits, DOL will take steps to ensure that illicitly obtained payments be returned.
This includes setting up payment plans, garnishing state and federal tax returns, and referring non-payment matters to state and/or federal law enforcement as necessary.
Verifications are brought forward, because in some cases, workers have been victims of identity theft, where someone else uses their personal information to claim this benefit.
This can happen whether or not you have claimed these funds in the past, whether or not you are currently working, and whether or not you receive other government benefits.
For her part, the commissioner of the New York State Department of Labor, Roberta Reardon, asserted that when someone files a fraudulent unemployment insurance claim, “they are robbing New Yorkers.”
“We are alert and we will continue making sure these criminals are held accountable. We thank businesses and employers for working with us to uncover fraud.”
This new system is part of NYSDOL’s modernization efforts that include a four-year plan to improve the student experience. customer and reduce fraud.
The data:
- $45,600 millions from the National Unemployment Insurance program during the pandemic, they could have stolen from everything Pandemic unemployment benefit program scammers across the country, using the Social Security numbers of deceased people and other tactics to trick and defraud the US government, report federal intelligence agencies.
Report Fraud:
NYSDOL is committed to ensuring that fraudulent unemployment insurance claims are prevented and corrected. To report UI fraud and learn more, visit the Report Fraud page on the NYSDOL website.