U.S. Sen. Mike Crapo (R-ID), Ranking Member of the Senate Finance Committee, and U.S. Reps. Kevin Brady (R-TX), Ranking Member of the House Committee on Ways and Means, and Jackie Walorski (R-IN), Ranking Member of the House Subcommittee for Worker and Family Support, asked the Government Accountability Office (GAO) to investigate fraud in the COVID unemployment insurance programs.
Calling the possible incidents of fraud the “greatest theft of American tax dollars in the nation’s history,” the Congress members said in a letter to the GAO that initial investigations into fraud in the COVID unemployment program found that international organized criminal groups targeted the funds by using stolen identities to file for unemployment benefits, and that domestic groups have also committed unemployment fraud.
The lawmakers estimated the amount for fraud to be between 13 and 60 percent of the programs $644 billion budget.
“Fraud in COVID unemployment programs appears to be the greatest theft of American tax dollars in our nation’s history, estimated at anywhere from $89 billion to $400 billion,” they wrote. “Yet, there is currently no federal effort in place to formally evaluate and estimate the true scope and severity of COVID unemployment fraud nationwide. We request that GAO, as part of its mission and ongoing work to reduce improper payments and safeguard federal funds, investigate, and provide a national estimate of funds lost because of fraudulent activity.”
The lawmakers requested that the GAO investigate the scope and severity of fraud in Pandemic Unemployment Assistance (PUA), Federal Pandemic Unemployment Compensation (FPUC), Pandemic Emergency Unemployment Compensation (PEUC), and Extended Benefits (EB). Additionally, the Congress members asked that the GAO do a targeted review of several federal agencies, including the Department of Homeland Security, the IRS, the Department of Justice and the Department of Labor, as well as state auditors, state unemployment fraud task forces and state Attorneys General.
“Unemployment fraud takes resources away from American workers who deserve assistance and puts those resources directly in the pockets of fraudsters. Given that roughly a year-and-a-half has elapsed since the pandemic’s onset and given what appears to be the largest amount of unemployment fraud in history since March of last year, it is concerning that some seem almost indifferent to the massive fraud that has occurred.
The letter asks the GAO to complete its investigation by December 31, 2021.