State Unemployment Systems at Risk of Fraud, Watchdog Says

April 24, 2020, 10:56 AM

The need for states to quickly 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 said in a new report.

Struggles Ahead: The DOL’s Office of Inspector General said that states and the agency’s Employment and Training Administration face significant challenges. Unless a series of preventative actions are taken, states will struggle to balance the influx of claims with their responsibility to ensure that only those eligible for unemployment insurance are approved, the report said.

Little-Used Tool: A federally authorized program that lets employees ...

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