🔒 States Spent Millions On Deloitte’s ‘Anti-Fraud’ Covid Unemployment Systems, But They Suffered Billions In Fraud Losses

TL;DR

In a presentation to the Kansas Department of Labor, in which it claimed to have prevented $100 billion in pandemic unemployment fraud, Deloitte touted “advanced AI-driven fraud detection,” as well as “identity proofing” to help “prevent unauthorized activity,” technologies that had been deployed across U.S. states for over a decade.Deloitte spokesperson Karen Walsh said that the company had helped states pay out more than $200 billion in state and federal unemployment assistance and stopped “millions of fraudulent unemployment claims.” “Deloitte incorporated all identity proofing solutions and anti-fraud technologies authorized by the states and, as signs of criminal activity emerged, recommended additional methods and tools to strengthen program integrity and stop billions of dollars in fraud,” she added.But this data is incomplete: It does not take into account figures from the 2022 fiscal year, which are still being tallied, nor the $1.2 billion in benefits payments that have been flagged as potentially fraudulent and are still being adjudicated.The suspect also successfully claimed unemployment under her own name, even though she was working for both the Ohio Department of Job and Family Services and the U.S.In June 2020, it was tasked by Michigan to report on the state’s Covid-related fraud problems and detailed a case that bore several similarities to"

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