COLUMBUS – The state says it has recovered nearly $398 million in unemployment benefits that were the result of bogus claims.
Fraudulent claims for unemployment benefits ballooned during the pandemic, when the federal government was supplementing those payments, and efforts to screen claims for fraud slowed down payments for legitimate claimants.
The Ohio Department of Job and Family Services shared data with more than 30 banks and several law enforcement agencies to recover $397.5 million, director Matt Damschroder said.
The agency shared data regarding potentially fraudulent transactions with banks, which conducted their own investigations and returned funds flagged as suspicious.
Funds returned so far include $69.7 million from PayPal and $41.3 million from 32 other banks.
The state has also recovered $238.5 million in payments that were prevented from being distributed, $30.2 million that was seized by federal authorities, and an additional $17.8 million recovered through voluntary repayments, offsets, and returns from other states, Damschroder said.
UPDATE 6/10/22 9:48 a.m.: Of the 9,484 initial claims for unemployment benefits filed during the week of May 29 through June 4, approximately 2,786 were flagged for more stringent verification to ensure they are not fraudulent, department officials said.
The number of Ohioans filing first-time claims was 7.5% higher than the week before, according to data the department shared with the U.S. Department of Labor on Friday.