State Unemployment Systems at High Risk of Fraud, Watchdog Says

The need for states to rapidly provide jobless benefits during the coronavirus pandemic will expose the federal-state unemployment insurance system to greater fraud and waste, the Labor Department’s independent watchdog warned in a new report.

The report DOL’s Office of Inspector General released Thursday outlined “initial areas of concern” related to the massive expansion of jobless benefits provided by new coronavirus-relief laws. It cautioned that states and the department’s Employment and Training Administration, which oversees state unemployment insurance systems, face significant challenges. Unless a series of preventative actions are taken, the report said, states will struggle to balance the influx ...