States Crack Down On Unemployment Fraud

In 2009 President Obama issues an executive order for states to crack down on those taking advantage of the unemployment system, despite not being eligible to be on the system. Now in 2011, the problem still exists. Last year alone $17 billion was given to those scamming the system.


In hard economic times with unemployment near 10%, with just as many given up looking for work, money needs to be in the unemployment insurance fund to assist those eligible and in need. Last year, as much as 30% of incorrect payments went out to those that had already reentered the workforce.


Dale Ziegler, deputy administrator for the Office of Unemployment Insurance, has said that all states will have until September 30th to submit plans to the Federal Government to reduce waste. Among the areas they are looking to clean up are: continued payments to those that found work, double payments to those in the system, payment to those past the insurance claim limit, payment to those that were not eligible to begin with.

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