History of unemployment insurance fraud in Rhode Island
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Unemployment insurance fraud is a term that refers to the unlawful receipt of unemployment insurance benefits by ineligible individuals. Unemployment insurance fraud occurs when an individual commits certain prohibited acts under the joint federal-state unemployment insurance program in order to claim benefits that they are not entitled to receive.[1]
Employers, claimants, and criminals commit unemployment insurance fraud in a variety of ways with penalties ranging from monetary fines to incarceration, depending on the state.[1]
This page provides information about the history of unemployment insurance fraud in Rhode Island.
The following pages provide a deep dive into the joint federal-state unemployment insurance program:
Background
The joint federal-state unemployment insurance program provides temporary monetary payments to individuals who have lost employment through no fault of their own. The federal government oversees the general administration of state unemployment insurance programs. The states control the specific features of their unemployment insurance programs, such as eligibility conditions and length of benefits.[2]
What is unemployment insurance fraud?
- See also: Unemployment insurance fraud
Unemployment insurance fraud occurs when employers, claimants, or criminals violate certain state unemployment insurance laws in order to claim unemployment insurance benefits that they are ineligible to receive.[1]
Unemployment insurance fraud can take many forms. Employers, for example, may seek to avoid tax liability by establishing false accounts. Claimants, on the other hand, may submit false information, continue collecting benefits when no longer eligible, or fail to be able or available for work, among other fraudulent actions. Criminals generally commit unemployment insurance fraud through identity theft, such as filing false claims using stolen identities or defrauding individuals through scam websites that mimic state unemployment insurance portals.[1][3]
Types of unemployment insurance fraud
Employers, claimants, and criminals can commit unemployment insurance fraud in a variety of ways. The following list identifies selected examples of unemployment insurance fraud:[4][5]Cite error: Invalid <ref> tag; invalid names, e.g. too many
Individuals
- Reporting false information on an unemployment insurance application.
- Failing to report employment, such as self-employment, temporary positions, or cash jobs.
- Neglecting to report income.
- Making false statements to receive or increase benefits.
- Failing to report work refusals.
- Falsifying work searches.
- Not disclosing a work separation.
- Receiving benefits when incapable or not available to work.
- Neglecting to report other remittances, such as workers' compensation payments.
- Assisting another individual to commit unemployment insurance fraud.
Employers
- Wrongly classifying workers as independent contractors.
- Neglecting to report wages paid to employees or falsifying employee information.
Criminals
- Using another individual's identity to file for unemployment insurance benefits.
Notable periods of unemployment insurance fraud in Rhode Island
The following section examines notable periods of fraud in the joint federal-state unemployment insurance program.
The U.S. Department of Justice (DOJ) established the multi-agency National Unemployment Insurance Fraud Task Force (NUIFTF) in response to the increase in federal funds attributed to unemployment benefits during the coronavirus (COVID-19) pandemic. The task force broadly aimed to combat fraud related to the Paycheck Protection Program (PPP), the Economic Injury Disaster Loan (EIDL) program, and state-administered unemployment insurance programs. The DOJ as of March 2021 had filed criminal charges against 474 defendants aiming to obtain more than $569 million through fraud—including unemployment insurance fraud—related to the coronavirus (COVID-19) pandemic.[6]
Rhode Island paid $342.6 million in fraudulent unemployment claims between April 1, 2020, and March 31, 2021, according to the U.S. Department of Labor.[7]
See also
- Unemployment insurance
- Unemployment insurance in Rhode Island
- Unemployment insurance fraud in Rhode Island
Footnotes
- ↑ 1.0 1.1 1.2 1.3 U.S. Department of Labor, "Report Unemployment Insurance Fraud," accessed May 20, 2021
- ↑ Employment Law Firms, "How Unemployment Works," accessed May 18, 2021
- ↑ Social Security Administration, "Unemployment Insurance, Then and Now 1935-1985," accessed May 19, 2021
- ↑ Work It Daily, "Are You Committing Unemployment Insurance Fraud By Accident?" April 14, 2020
- ↑ Financial Web, "What is Unemployment Fraud?" accessed June 21, 2021
- ↑ U.S. Department of Justice, "Justice Department Takes Action Against COVID-19 Fraud," March 26, 2021
- ↑ U.S. Department of Labor, "Unemployment Insurance Payment Accuracy Datasets," accessed October 8, 2021
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