The Michigan Unemployment Insurance Agency is continuing its "Stop Payment" actions against thousands of unemployed people. | Pixabay
The Michigan Unemployment Insurance Agency is continuing its "Stop Payment" actions against thousands of unemployed people. | Pixabay
Payment stops meant to thwart impostors continue for thousands of Michigan residents receiving unemployment benefits even as the state’s fraud investigation task force works to investigate and prosecute unemployment fraud during the COVID-19 pandemic.
The Michigan Unemployment Insurance Agency initially sent “Stop Payment” notices to approximately 340,000 residents with active accounts, the Department of Labor and Economic Opportunity’s website states.
Since March, approximately 2.2 million residents of Michigan filed for unemployment relief, Bridge Michigan reported.
The “Stop Payment” action was taken in response to attacks on unemployment systems throughout the U.S., The Department of Labor and Economic Opportunity’s website statws.
“The UIA was able to validate more than 140,000 legitimate accounts, with benefits resuming within days,” according to the department's website.
“In the last several weeks, many of Michigan’s new claims filed are suspected of fraud … No payments have been sent to the more than 200,000 of these flagged accounts, which now must also provide the additional identification verification.”
A posting on the department's website gave the rationale for the “Stop Payment’s Notice."
“Due to large-scale fraud attempts against state unemployment programs across the nation, the UIA has developed additional measures to protect certain claimants by requiring further identity verification and claim eligibility authentication,” according to the department's website.
Claimants’ personal data wasn’t stolen, but people who had “Stop Payment” notices on their accounts received mailed and emailed instructions on submitting more information of identification.
The Unemployment Insurance Fraud Task Force, made up of federal and Michigan agencies, has a goal of investigating and prosecuting unemployment fraud.
“Members are also partnering to assure legitimate claimants receive the benefits they deserve and protect Michiganders from unemployment identity theft,” according to the department's website.
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