Fraud Remains a Problem With Kentucky’s Unemployment Insurance System, Says Auditor Harmon | News







Kentucky State Auditor Mike Harmon said a single Kentucky statewide audit for fiscal year 2021 found fraud continues to be a problem with the system. Kentucky unemployment insurance.

Volume 1 of Kentucky’s single statewide audit for fiscal year 2021 was released Wednesday. According to Harmon, the audit included 19 findings, nine of which related to issues identified by auditors for the Kentucky Bureau of Unemployment Insurance (OUI) and the Unemployment Insurance (UI) system.

Some of the problems with fraudulent unemployment insurance claims include:

  • 54 claimants received a total of $333,165 in unemployment insurance payments and had declared the labor firm or “Commonwealth of Kentucky” as their employer.
  • From January to March 2021, 2,455 claims were filed which received only two weeks of payouts during the quarter, totaling over $2.9 million.
  • There were 28,377 out-of-state unemployment insurance claimants who received a total of more than $195 million during the fiscal year.

“Our review found that while OUI took steps to stop paying these fraudulent claims, they did so after each claim had been improperly paid for at least two weeks,” auditor Harmon said. . “From the small samples of claims auditors reviewed, over $118,900 was confirmed to be fraudulent, with over $31,000 paid to an out-of-state claimant. Although OUI has used software and tools to detect fraud, it is clear that a disturbing number of fraudulent claimants have received payments. »

To view Volume 1 of the Kentucky Statewide Single Audit, Click here.

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