The Departments of Labor (DoL) and Treasury announced a partnership to expand unemployment insurance (UI) fraud fighting tools to states through a data-matching system.
The data-sharing partnership will provide agencies with access to the Do Not Pay Working System data sources and services through the UI Integrity Data Hub. The hub is a centralized, multistate data-matching system used by states to aid fraud prevention and improper payment reduction efforts, the May 2 announcement says.
“To mitigate fraud risks and reduce improper payments, state unemployment agencies need access to the best controls,” said DoL’s Assistant Secretary for Employment and Training José Javier Rodríguez. “This partnership will allow states to access critical Do Not Pay data sources, which means they will be able to use existing infrastructure like the UI Integrity Data Hub more effectively to ensure the accuracy of unemployment payments.”
According to the departments, the Do Not Pay Working System provides a no-cost service for Federal agencies and Federally funded state-administered programs to verify claim eligibility and prevent fraud and improper payments.
“The Treasury Department is committed to building partnerships with key stakeholders – including federally funded state administered programs – to ensure we’re paying the right person, in the right amount, at the right time,” said Treasury’s Fiscal Assistant Secretary David Lebryk. “Getting money out the door quickly to support those in need doesn’t have to mean weakening controls and safeguards. By expanding access to Do Not Pay through our partnership with National Association of State Workforce Agencies’, states will be better equipped to prevent and detect fraud and improper payments in their UI programs.”
A recent Pandemic Response Accountability Committee (PRAC) report found that state’s legacy IT systems “may not have been easily compatible with the National Association of State Workforce Agencies (NASWA) UI Integrity Center’s Integrity Data Hub,” hindering their ability to detect fraudulent payments.
During the COVID-19 pandemic, UI fraud ran rampant, with the Government Accountability Office estimating that it reached a range of $100 billion to $135 billion.
