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New York Blocks $1 Billion in Fraudulent Unemployment Claims

Aug. 13, 2020, 3:57 PM

The New York State Department of Labor has rejected as fraudulent more than $1 billion in unemployment insurance claims since the start of the coronavirus outbreak, even as it paid out $40 billion in benefits.

The department identified and stopped more than 42,200 fraudulent unemployment benefit claims since mid-March—when New York was the epicenter of the U.S. coronavirus outbreak—and has referred more unemployment fraud cases to federal prosecutors than it has in the last 10 years combined, it said in a press statement Thursday.

“Unfortunately, we have to fight unemployment fraud every day—not just during pandemics—but attempting to defraud the ...