State paid at least $5.2 billion in fraudulent or excessive unemployment claims during pandemic, audit finds
A closed Illinois Department of Employment Security office in Chicago at 2444 W. Lawrence Ave. on July 14, 2020.
The PUA program was meant to pay people not usually covered by unemployment insurance, such as gig workers or the self-employed. Federal unemployment officials and law enforcement openly warned that thieves, many of them overseas, were jamming states’ online portals with fake claims. “This is a crucial distinction from regular unemployment insurance program because the state’s system is designed and integrated with vital cross-matching and identity-proofing capabilities,” Cisco said in an email., however, found the problems in Illinois were exacerbated by IDES’ failure to follow federal recommendations to adopt free fraud-fighting tools made available before the pandemic, while also being slow in developing other processes to ferret out fraud.
Suspending the verification methods or processing them offline allowed IDES to better manage the volume of claims, the report stated, but it left the unemployment programs administered by the agency more susceptible to fraud.
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