The state of New York is cracking down on unemployment fraud.
The effort is aimed at eliminating or curtailing unemployment insurance scams after a recent investigation determined there was $11 million in fraudulent benefit payments last month.
Governor Kathy Hochul announced the move after the report showcased how much money the state is losing through these scams.
“At the height of the pandemic, when our state experienced an unprecedented unemployment crisis, these fraudulent unemployment insurance claims took resources away from New Yorkers who needed them most,” Hochul said. “My administration is taking action to step up our investigations of unemployment insurance fraud, hold those who take advantage of the system accountable, and protect this crucial benefit for New Yorkers in need.”
Investigators with the state say the benefits were almost entirely paid out to people who were working during the pandemic or afterward. In total, there have been $110 million in fraudulent payments this year.
The Department of Labor is going through a customer service and anti-fraud overhaul. However, that’s expected to take around four years.
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