Maryland Department of Labor Provides Updates on Unemployment Fraud Investigation
Over 82% of Claims Flagged and Investigated Confirmed as Fraudulent
Paid Over $7.3 Billion in Benefits
BALTIMORE, MD (October 14, 2020) – The Maryland Department of Labor (Labor) today provided an update about the department’s ongoing unemployment insurance fraud prevention, detection, and investigation efforts.
“With bad actors continuing to target the important unemployment insurance funds intended to help those in need, our department has maintained heightened security measures to prevent and detect fraudulent activity,” said Labor Secretary Tiffany Robinson. “We have more than doubled the team of specialists reviewing and verifying documentation to ensure that all fraudsters are properly reported, while legitimate claims are reinstated and paid the benefits they deserve.”
Over 82% of Claims Flagged and Investigated Confirmed as Fraudulent
With aggressive security measures in place, Labor continues to investigate potentially fraudulent in-state and out-of-state claims. With over 82% of claims flagged and investigated being confirmed as fraudulent, it is critical that the department reviews and verifies documentation manually.*
- Of the 102,406 out-of-state claims that have been identified as being potentially fraudulent, 93,199 (91%) have either not uploaded the verification documentation requested or their documentation has been reviewed and denied.
- Of the 67,746 in-state claims that have been identified as potentially fraudulent, 46,819 (69.1%) claims have either not uploaded the verification documentation requested or their documentation has been reviewed and denied.
- There are currently 9,677 (5.7%) in-state and out-of-state potentially fraudulent claims pending manual review and verification by a dedicated team of specialists.
*Note that these numbers are subject to change as the department continues to flag potentially fraudulent claims.
Last month, Labor announced the results of the initial fraud investigation that was launched after the State of Maryland uncovered a criminal enterprise that filed tens of thousands of fraudulent unemployment insurance claims in July.
Labor continues to coordinate its investigation with the U.S. Department of Labor’s Office of the Inspector General (OIG) and the U.S. Attorney’s Office.
Paid Over $7.3 Billion in Benefits
As of the week ending October 3, Labor has paid over $7.3 billion in benefits from the CARES Act, Extended Benefits, and regular unemployment insurance programs. Of the 736,678 complete claims filed since March 9, 672,053 (91.2%) have been processed with 568,823 (77.2%) receiving benefit payments and 103,230 (14.0%) being denied benefits for not meeting state or federal program requirements.
If you believe that your information has been used to fraudulently file an unemployment insurance claim, please contact Labor’s Division of Unemployment Insurance by e-mailing ui.fraud@maryland.gov. To receive updates and additional information about unemployment insurance programs in Maryland, visit MDunemployment.com.