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The watchdog office attributes it to the pandemic economy and the "unprecedented" levels of federal funding for unemployment insurance through the Coronavirus Aid, Relief and Economic Security (CARES) Act, and other legislation. This "into the UI program gave individuals and organized criminal groups a high-value target to exploit," according to the report.
Both factors have also made it difficult for the Labor Department to efficiently distribute benefits "while ensuring integrity and adequate oversight," according to the report.
The issue is not new. In June 2020, the Office of the Inspector General issued a report to Congress identifying that at least $26 billion of CARES Act funds at the time could be wasted, largely to fraud. More than a year later, and that number has more than tripled.
Both factors have also made it difficult for the Labor Department to efficiently distribute benefits "while ensuring integrity and adequate oversight," according to the report.
The issue is not new. In June 2020, the Office of the Inspector General issued a report to Congress identifying that at least $26 billion of CARES Act funds at the time could be wasted, largely to fraud. More than a year later, and that number has more than tripled.
Stunning waste: Unemployment fraud during COVID cost more than triple total benefits paid in 2019
At least 10% of all unemployment benefits paid during the pandemic were lost to fraud.
justthenews.com