WASHINGTON — Nearly $1 billion of COVID-19-era unemployment benefits is sitting unused and ripe for fraud, the Labor Department’s official watchdog has warned.
The department’s Office of Inspector General (OIG) found that some $720 million in unemployment insurance benefits are sitting on prepaid debit cards, while another $192 million has been moved to state unclaimed property offices.
“My office has warned that, absent swift action, US taxpayers risk losing nearly a billion dollars in fraudulently obtained benefits,” Inspector General Anthony D’Esposito said in a statement last week.
“This is taxpayer money — and it demands immediate attention. We’ve done the investigative work. We’ve identified where the money is. There is no excuse for delay, and no acceptable outcome other than returning these dollars to the American people.”