Unemployment insurance (UI) fraud remains a big problem for employers and is punishable by law. UI fraud, occurs when an “individual fraudulently files for unemployment benefits…and misreports previous income, lies on an application, fails to look for a new job or does not report an income source” in order to collect unemployment benefits.
According to the U.S. Department of Labor, states recorded an aggregate sum of $7.7 billion dollars in improper unemployment insurance payments from 2013-2015. Improper payments were highest in Nevada, New Mexico, Wisconsin, Tennessee, North Carolina, DC, and Maine. Read more