A recent State Department of Labor investigation uncovered more than $11 million worth of unemployment insurance fraud in August, and $110 million overall this year.
These benefits were handed out almost exclusively to those who were working while also collecting unemployment insurance during the COVID-19 pandemic. As a result, the Empire State will seek repayment of these funds, and refer those who don’t pay up to the attention of law enforcement.
“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. My administration is taking action to step up investigations of unemployment fraud, hold those who take advantage of the system accountable, and protect this crucial benefit for New Yorkers in need”, Gov. Hochul said.
The fraud was identified using an upgraded detection system, which is part of modernization efforts taken by the State Department of Labor.