Lawmakers Push for UI Fraud Prevention While Improving Equity and Access

The COVID-19 pandemic saw 52 million Americans file for unemployment insurance (UI) benefits, straining state systems and exposing vulnerabilities that led to an estimated $135 billion in fraud. Now, lawmakers and government agencies are focusing on modernizing UI systems to prevent future fraud while enhancing equity and accessibility for claimants. A bipartisan bill introduced by Senators Ron Wyden and Mike Crapo calls for improved data-sharing and modern technology to reduce fraud and increase access. Successful initiatives in states like Alabama and Kentucky show that fraud prevention can go hand-in-hand with building equitable systems. Modern identity verification tools, cloud-based technology, and user-friendly interfaces are among the strategies being implemented to achieve this balance.

States are leveraging federal funding from the Department of Labor (DOL) to modernize their systems and improve UI accessibility. Tools like the UI Integrity Data Hub (IDH) have already helped prevent billions in fraudulent payments. Meanwhile, states like New Jersey are creating user-friendly systems that reduce call center traffic and improve identity verification processes. These efforts demonstrate that fraud prevention and equitable access can coexist, setting a blueprint for future UI modernization efforts.