Work In Progress

Unemployment Insurance Agency’s (UIA’s) Fraud and Investigation Activities - 186-0320-22

Description of Agency

Unemployment insurance (UI) claim fraud includes imposter fraud (claims often filed by criminals from other states or overseas who use stolen identities to file multiple false claims), internal fraud (UIA employee and/or UIA contractor staff), and intentional misrepresentation (an act of willful misrepresentation or nondisclosure of a material fact for the purpose of obtaining benefits to which the claimant is not entitled or preventing benefit payments where an individual is entitled). UIA uses several strategies to identify and investigate UI claim fraud, including using Fraud Manager software to analyze claims at filing and certification and coordinating a variety of fraud detection and investigation efforts within and outside of UIA.

The COVID-19 pandemic resulted in a spike of unemployment claims in all states, including Michigan. In March 2020, the federal Coronavirus Aid, Relief, and Economic Security (CARES) Act created several new federally funded pandemic unemployment compensation (UC) programs, increasing the weekly benefit amount and expanding eligibility to claimants not otherwise eligible for unemployment benefits.

Audit Objectives

To assess the sufficiency of UIA’s efforts to identify and investigate potential claimant fraud.

Timing

Estimated Release Date: Mid 2023

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