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July 20, 2022 Last Edit: May 8, 2025
Different laws being considered nationwide?and in Congress
Explained: Massive Unemployment Insurance Fraud and What States are Doing About It

- 27 states – Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Idaho, Indiana, Kentucky, Louisiana, Maine, Massachusetts, Mississippi, Missouri, Montana, Nevada, New Jersey, New York, North Carolina, North Dakota, Oregon, Pennsylvania, South Carolina, Texas, Virginia, and Wyoming, as well as the District of Columbia – use ID.me, an online verification tool, to help identify and secure against fraudulent claims.
- Louisiana became one of the first states to pass anti-fraud legislation in October 2020 by requiring the state administrative agency to conduct checks and data sharing while handing out unemployment compensation. Eight other states subsequently passed similar laws.
- In April 2022, Michigan passed a bill which funds the fight against UI fraud. The new law, which allows for expansions of both the state’s Unemployment Insurance Agency and additional enforcement powers to the state Attorney General, was spurred by a report from the state government that revealed almost 400,000 Michiganders were overpaid UI benefits during the COVID-19 pandemic.
- An Illinois state audit found that of the $3.6 billion in Pandemic Unemployment Assistance paid out from July 2020 through June 2021, nearly $1.9 billion, was tied to fraud. The state previously claimed that they had confirmed over 212,000 fraudulent unemployment claims had been filed.
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