North Gwinnett News

With thousands laid off last year during the pandemic, unemployment benefits suddenly became more important than ever. Equally important was the effort to ensure that all unemployment assistance was subjected to as little fraud as possible and disbursed to those truly in need. 

Theft of government benefits ranks among the costliest types of fraud in America. During 2020, law enforcement in the U.S. reported 4.7 million cases of fraud, identity theft and other scams, eclipsing 2019 figures by almost 1.5 million reports and costing Americans approximately $3.3 billion last year. Fraudulently applying for government benefits was the most common type of fraud, with 400,000 instances in 2020, an almost 3,000% increase from 2019.

Would the end of federal supplemental pandemic assistance alleviate the alarming rate of fraud?

Buzz Brockway | GCO

Buzz Brockway, VP of Public Policy for the Georgia Center for Opportunity, explained that while the importance of assistance for the unemployed cannot be denied, the extra help should not go on forever. 

"Unemployment benefits are important, but they should be a temporary measure to get people back to work," Brockway said. "Otherwise, our system ends up incentivizing dependence. We know that many of our neighbors are still struggling to find work, while many employers continue to struggle to find enough workers to fill open positions."

The Peach State appears to have fared better in keeping unemployment fraud at bay than the rest of the US. Despite high national rates of fraud, Georgia’s Unemployment Program Integrity remained strong, according to the U.S. Department of Labor (DOL).

Georgia tied with Hawaii for the lowest improper-payment rate for unemployment benefits, at 3.9%. The national average was far higher, at 9.17%.

The DOL report analyzed trends from July 1, 2017, to June 30, 2020. The Payment Integrity Information Act (PIIA) requires state unemployment programs to report an annual improper payment rate below 10%. 

Georgia succeeded in remaining far below this threshold. The states with the highest improper payment rates for unemployment benefits during this period included Washington, Wisconsin, Michigan and Massachusetts.

While Georgia seems to have a strong defense against unemployment fraud, the state ranks 7th nationally in rate of identity theft, according to MSN. Credit card fraud alone makes up almost half of all identity theft claims in the state. 

The Center Square reported that the Peach State's unemployment rate is settling closer to pre-pandemic levels. Gov. Brian Kemp announced in May that Georgia would opt out of federal unemployment benefits and reinstate work requirements for receiving benefits.

Brockway encourages Georgia to maintain the momentum in reconnecting the state's workforce and businesses. 

"Our next step must focus on using the resources available to move people into the dignity of employment by addressing laws that hold people in poverty and by supporting community efforts to empower people with skills for success," he said.