Alert Memorandum: The Employment and Training Administration (ETA) Needs to Ensure State Workforce Agencies (SWA) Implement Effective Unemployment Insurance Program Fraud Controls for High Risk Areas [open pdf - 214KB]
Alternate Title: [Alert Memorandum from Carolyn R. Hantz to Suzan G. Levine, Regarding the Employment and Training Administration (ETA) Needs to Ensure State Workforce Agencies (SWA) Implement Effective Unemployment Insurance Program Fraud Controls for High Risk Areas, February 22, 2021]
From the Document: "The purpose of this memorandum is to alert you to a concern the Office of Inspector General (OIG) identified during our ongoing audit of the Department of Labor's (DOL) response to the Unemployment Insurance (UI) Program's expansion under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). The information provided herein was developed in collaboration with the OIG's Office of Investigations. We identified more than $5.4 billion of potentially fraudulent UI benefits paid to individuals with social security numbers filed in multiple states, to individuals with social security numbers of deceased persons and federal inmates, and to individuals with social security numbers used to file for UI claims with suspicious email accounts. The Department needs to take immediate action and increase its efforts to ensure SWAs implement effective controls to mitigate fraud in these high risk areas. This alert memo only captures a subset of the potential fraudulent UI activities from March 2020 through October 2020, and is the result of our comprehensive data analysis performed. The OIG expects that the actual amount of potential fraud is much larger."
Department of Labor, Office of the Inspector General, Report No. 19-21-002-03-315