LANSING, MI (WKZO AM/FM) – A report from Michigan Unemployment Insurance Agency details how imposters were able to file bogus claims amounting to “hundreds of millions” of dollars in fraudulent payouts.
The agency report says changes it made in an effort to get workers paid as quickly as possible compromised security and increased the exposure to fraud. In May 2020, the UIA temporarily stopped payments on more than 600,000 claims until identities could be verified.
Michigan has processed 2.8 million jobless claims since the beginning of the coronavirus pandemic in March, a volume the UIA says is would usually handle over a six year span.
State Representative Matt Hall, who chairs the Joint Select Committee on the COVD-19 Pandemic, says his committee will hear from new UIA Director Liza Estlund Olson Wednesday, December 2 at 8:30 a.m.
Hall, whose 63rd District covers Eastern Kalamazoo County and central Calhoun County, in a statement said “For months, I’ve had concerns that UIA’s decisions during this surge in claims have led to an uptick in fraud.”
“I am hopeful UIA and the Legislature can work together to analyze our fraud detection process and build a system that residents can rely on.”
