Pandemic Unemployment Fraud Estimates Double to $100-$135 Billion; Smith and Crapo Call for Action.
SEPTEMBER 12, 2023
WASHINGTON – Official government estimates of fraud in pandemic-era unemployment insurance (UI) programs have doubled within the last six months, reaching a staggering sum of $100 to $135 billion according to a newly released U.S. Government Accountability Office (GAO) report. The report, issued in response to a request from House Ways and Means Chairman Jason Smith (R-MO) and Senate Finance Ranking Member Senator Mike Crapo (R-ID), doubles the original estimate provided in testimony to the Ways and Means Committee in February. This range means anywhere from 11 to 15 percent of total UI benefits paid during the pandemic were fraudulent. Outside experts put the number much higher at $400 billion.
According to GAO, as of May 1, 2023, states have reported fraudulent overpayment recoveries of only about $1.2 billion.
https://waysandmeans.house.gov/pandemic-unemployment-fraud-estimates-double-to-100-135-billion-smith-and-crapo-call-for-action/
Unemployment Insurance: Estimated Amount of Fraud During Pandemic Likely Between $100 Billion and $135 Billion
GAO-23-106696
Published: Sep 12, 2023. Publicly Released: Sep 12, 2023.
https://www.gao.gov/products/gao-23-106696