Thousands of false claims cause issue for Kansas unemployment system

An increase in fraudulent activity over the last several months influenced by national and international shutdowns has caused a crack in Kansas’ unemployment system

Criminal organizations have formed a multibillion fraud scheme in the U.S. that has singled in on the unemployment payment system in Kansas, fraudsters submitting thousands of false claims that have caused a slowdown in genuine relief payments to Kansas residents who have experienced job loss due to COVID-19, according to reports.

So far at least 45,000 fraudulent payments have been blocked by the Kansas Department of Labor this year, Ryan Wright, acting secretary of the Kansas Department of Labor, said.

Although total losses caused by the criminal activity nor how many are thought to be involved in the scheme can be confirmed right now, the Legislature approved an audit of the program to determine how many payments slipped through to them, according to The Wichita Eagle.

These criminal organizations have affected citizens across the U.S., many unaware they have fallen victim until they try to file a legitimate claim.

“We will know eventually what the scale and scope of this is and what those costs are,” Wright said, though did say that on a national level, an estimated $8 billion in false claims have been filed nationwide this year, according to the U.S. Department of Labor inspector general.