August 26, 2013

DOL Cracking Down on Unemployment Fraud

According to hartfordbusiness.com, the state’s Department of Labor (DOL) and chief state’s attorney’s office have recently launched a criminal crackdown on people fraudulently collecting unemployment benefits. Using grants from the federal government, DOL hired extra investigators and a prosecutor to pursue fraudulent unemployment claims and is relying on new software tools to help cross-reference claimants with their employment, payroll, and other records to detect fraud. The new information and tips received from employers and others has helped lead the chief state’s attorney’s office to 15 arrests for alleged thefts totaling over $290,000.

Overall, the state has recovered $10 million this year through income-tax intercepts, wage garnishments, and individual overpayments. According to the federal department of labor, it ranks second (behind Rhode Island) in curbing improper unemployment benefit payments.