NY detects those who have cheated with unemployment insurance: $ 110 million fraudulent this year

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), they must take into account 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 way.

Governor Kathy Hochul this week announced a crackdown on unemployment insurance fraud, after a New York State Department of Labor (DOL) investigation uncovered a massive insurance fraud involving more than $11 million in payments of these benefits in the month of August alone.

The state government announced that it will pursue 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 million in fraudulently obtained profitsonly this year.

“At the height of the pandemic, when our state experienced an unprecedented unemployment crisis, this unemployment insurance scam took resources away from New Yorkers who needed them most,” he said. the state president.

New fraud detection system

The DOL identified the fraudulent payments using an updated fraud detection system. The process allows investigators to review cases more efficiently and expedite records requests to employers to confirm dates of employment. If the system detects a fraudulent payment, the complainant will have the opportunity to explain the discrepancy.

After review, if it is determined that the claimant worked while collecting benefits, DOL will take action to ensure that illegally obtained payments are returned.

This includes setting up payment plans, garnish state tax returns and federal and refer non-payment issues to state and/or federal law enforcement, as necessary.

The verifications are brought forward, because in some cases, the workers have been identity theft victimswhere someone else uses your personal information to claim this benefit.

This can happen either 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 He asserted that when someone files a fraudulent unemployment insurance claim, “they are robbing New Yorkers.”

“We are alert and will continue to make sure hold these criminals accountable. We thank businesses and employers for working with us to uncover fraud.”

This new system is part of the modernization efforts from NYSDOL that include a four-year plan to improve the customer experience and reduce fraud.

The data:

  • $45.6 billion from the National Unemployment Insurance program during the pandemic, scammers across the country could have stolen from the pandemic unemployment benefit program, using the Social Security numbers of deceased individuals and other tactics to deceive 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 on the NYSDOL website.

Leave a Reply