Watchdog estimates up to $135 billion in pandemic unemployment fraud, around 15% of benefits paid
- The Government Accountability Office estimates $100 to $135 billion in fraudulent pandemic unemployment claims, around 11-15% of total benefits paid.
- States reported over $55 billion in overpayments, including $5.3 billion confirmed as fraudulent.
- Loopholes and lack of verification enabled criminals to file fraudulent claims impersonating jobless Americans.
- The Labor Department disputes the methodology, but fraud distorted jobless data, making analysis difficult.
- Legislation has been proposed to incentivize states to recover funds and extend prosecution time limits.