According to Iowa Workforce Development (IWD), approximately $29 million in fraudulent unemployment insurance benefits have been paid out in the state since the start of the pandemic, and State Auditor, Rob Sand, says his office is prepared to assist in these investigations if asked. Most of the work in tracking down illegal claims will be handled at the federal level, and while the Auditor’s Office is equipped to handle this sort of work, it might not be the most efficient use of manpower.
Unemployment offices throughout the state saw a huge increase in claims beginning last March, resulting in a huge backlog of applications. Sand says nearly all of the claims were from Iowans who had been forced out of their jobs through no fault of their own due to the pandemic, so the state decided to approve applications quickly rather than delay aid. While there are plenty of examples of fraudulent claims, Sand says not all of the $29 million disbursed were sent to criminals or identity thieves. According to Sand, many Iowans are being told they need to pay back unemployment simply because they did not meet eligibility requirements.
He likens it to a “surprise short-term loan” that has left many Iowans shouldering an unanticipated debt. Sand says the state should use federal pandemic recovery funds to alleviate some of it.
Sand made his comments Thursday during a town hall meeting in Carroll.
