Over $5 Million Recovered from Fraudulent and Over Paid Unemployment Insurance Claims


The Nebraska Labor Department announced Friday that it has recovered nearly $5.8 million so far this year from people who were given too much unemployment pay, either because of errors or because they lied on their applications.

The department says that the total includes more than $2.7 million recovered through the federal Treasury Offset Program, which offsets federal tax refunds of people who commit fraud or reporting errors on their unemployment insurance claims.

The Treasury Offset Program was instituted in Nebraska in February 2013. In addition to the $2.7 million recovered so far this year, the program recovered more than $2 million last year.

Nebraska's rate of unemployment insurance fraud is about 1 percent, below the national average of around 2.7 percent as of 2013. The Department of Labor says the state's low rate is due to a continued focus on fraud prevention and detection.

The state's overall overpayment rate has also been declining. According to the labor department, the decline is thanks to training, IT advancements and legislation.

An example of the changes being made to prevent benefit overpayments involves the implementation of the new State Information Data Exchange System E-Response. This will allow employers to send information electronically instead of through the mail when an employee files a claim for benefits.