Jobless Aid Fraud Warrants Greater Federal Action, Watchdog Says

More federal government outreach to states is necessary to curb widespread unemployment insurance fraud during the pandemic, as billions of dollars have been paid to people illegally filing for benefits in multiple states, the U.S. Labor Department’s Inspector General warned.

Many states are still not cross-matching unemployment compensation claims against other state systems, the DOL’s independent watchdog found, and the problem is so extreme that one person filed for benefits in 40 states and received a combined $222,532 from 29 states.

The Labor Department “needs to take immediate action and increase its efforts to ensure” state agencies “implement effective controls ...