New York State Governor Kathy Hochul announced Tuesday, future actions to address unemployment insurance fraud. A recent New York State Department of Labor (DOL) investigation found that insurance fraud accounted for more than $11 million in benefits payments in August, the governor's office announced. In total, the Department of Labor's Office of Special Investigations is on pace to uncover $110 million in fraudulently attained benefits this year.
According to a press release, the benefits were paid almost exclusively to those working while also collecting unemployment insurance payments during the COVID pandemic. The governor's office said the State would seek repayment for fraudulent benefit payments and refer nonpayment to state law enforcement.
The fraudulent payments were identified by DOL using an upgraded fraud detection system. The system allows investigators to review cases more efficiently and streamlines records requests to employers in order to confirm dates of employment, the release said. If the system detects a fraudulent payment, the claimant has an opportunity to explain the discrepancy.
"When someone files a fraudulent unemployment insurance claim, they are stealing from New Yorkers," said New York State Department of Labor Commissioner Roberta Reardon.
"The Department remains vigilant and will continue to ensure that these criminals are held accountable. We thank businesses and employers for working with us to uncover fraud."