A report from the Government Accountability Office (GAO) found that between $100 billion to $135 billion in COVID-19 unemployment benefits was stolen.
The estimations are over double the amount of past projections.
According to the report, about 11%-15% of unemployment benefits were given to fraudsters.
“Because not all potential fraud will be investigated and adjudicated through judicial or other systems, the full extent of UI fraud during the pandemic will likely never be known with certainty,” the report states.
While the Department of Labor (DOL) denied the extent of the fraud, claiming GAO “likely overstated” the amount, “GAO disagrees and explains in the report the steps taken to estimate the range of fraud.”
The report adds, “The unprecedented demand for UI benefits and the need to quickly implement the new programs during the pandemic increased the risk of fraud.”
The increased use of the UI system “drew attention to its vulnerabilities and susceptibility to fraud, waste, abuse, and mismanagement,” GAO wrote. “In our prior work, we reviewed existing measures and estimates of fraud and found evidence of substantial levels of fraud and potential fraud in UI programs during the pandemic.”
Reporting from The Blaze:
Republican Idaho Senator Mike Crapo, ranking member of the Senate Finance Committee, released a statement in response to the watchdog's findings. "These shocking estimates continue to grow, and, as GAO notes, we may never know the full scope and scale of fraudulent pandemic payments," Crapo said. "Unfortunately, the Administration's efforts to address over one hundred billion dollars in fraud in the UI program have fallen woefully short. Congress should pass the Protecting Taxpayers and Victims of Unemployment Fraud Act to recoup stolen funds for victims and prevent similar large-scale theft from happening in the future."
