Kansas Department of Labor Releases Unemployment Fraud Attempts, Fraud Payments

~KDOL has referred more than 50,000 cases to law enforcement through fraud crackdown strategy~

TOPEKA – The Kansas Department of Labor (KDOL) today issued data on the number of fraud attempts, the estimated amount of fraud payments the agency has paid, as well as law enforcement referrals.

Following an in-depth analysis and IRS Form 1099-G reconciliation, KDOL has determined that from Jan. 1, 2020, through Dec. 31, 2020, about $140 million in fraudulent claim payments were made from the Kansas regular unemployment insurance program. Additionally, more than $150 million in fraudulent payments are attributed to federal benefits programs, for a total of $290 million.

USDOL-OIG estimates that unemployment fraud has cost taxpayers roughly $36 billion nationwide since the start of the pandemic. The total amount of potential fraud is roughly eleven percent of total unemployment insurance payouts since the start of the pandemic. Other states to have publicly shared their fraud numbers include:

• $11.4 billion in California
• $600 million in Washington
• $330 million in 2020 in Ohio

“Fraud is unacceptable and will not be tolerated. It’s stealing from taxpayers at the worst possible time and all attempts at fraud will be referred in the strongest possible manner to law enforcement,” Governor Kelly said. “All 50 states have been overrun with coordinated, sophisticated criminal fraud attempts, and that’s why I wrote a letter with fellow Governors, calling on Congress to provide funding to secure and modernize our systems.”

As part of a robust anti-fraud effort the agency has referred over 50,300 cases of alleged fraud to federal law enforcement partners for investigation and possible criminal prosecution, and is actively working with the Federal Bureau of Investigation, U.S. Secret Service, U.S. Department of Labor’s Office of Inspector General (USDOL-OIG) and the U.S. Attorney’s office to hold fraudsters to account.

“Congress opened the door for this historic level of fraud when they created multiple new pandemic-related unemployment programs, and at the same time prohibited states from asking basic verification questions,” Department of Labor Acting Secretary Shultz said. “It was not until the Continued Assistance Act was signed into law on Dec. 27, 2020 that states were able to take more aggressive action to verify claimant information in the federal programs.”

In early February, KDOL implemented a new fraud mitigation software solution that has drastically reduced the number of fraudulent claims that have been filed. Since its launch, this system has stopped more than 4.8 million bot attacks and fraudulent login attempts. As a result, KDOL’s fraud team has been able to focus their efforts on more sophisticated cases and investigations.

Since the beginning of 2020, KDOL stopped approximately 500,000 fraudulent claims that were the result of identity theft and other unemployment related fraud that could have cost more than $22 billion. These stopped claims are the result of many hours of effort from the KDOL fraud team who have worked tirelessly to combat sophisticated criminal rings, which have targeted the state’s unemployment system. The number also includes identity theft cases that have been reported by individuals and businesses.

Since March 15, 2020, KDOL has paid out over 4 million weekly claims totaling over $2.7 billion between regular unemployment and the federal pandemic programs.  For more information, or to apply for unemployment benefits, go to www.GetKansasBenefits.gov.

Governor Laura Kelly Announces KANSASWORKS Virtual Job Fair Begins Today

TOPEKA – Governor Laura Kelly today announced the next KANSASWORKS Statewide Virtual Job Fair will begin today, Feb. 23. The fair will continue through Thursday, Feb. 25.

The virtual fair will allow job seekers to easily live chat with employers from across the state through computers and mobile devices.

Click here to register for the Virtual Job Fair.

“The Virtual Job Fair is a safe and efficient way to help Kansans find work,” Governor Kelly said. “The team at KANSASWORKS has created a reliable system to connect Kansans with jobs that work for them, while assisting my administration’s efforts to keep Kansans safe, keep businesses open, and get kids back to school as quickly as possible.”

The Department of Commerce, in partnership with Local Workforce Development Boards, moved its statewide job fairs online in 2020 to eliminate public health risks associated with mass gatherings, and to continue providing job opportunities and maintaining a ready workforce for Kansas businesses.

Registration is now required for each virtual event. If job seekers have previously attended a Virtual Job Fair, they are required to re-register for this event with the link provided above.

“So many people have benefitted from the Virtual Statewide Job Fair system, and we will continue to provide this valuable workforce service to Kansans,” Lieutenant Governor and Commerce Secretary David Toland said. “Until it’s safe to hold in-person job fairs, this virtual system is the best possible way to protect everyone’s health while helping Kansans find meaningful careers and helping businesses fill vital positions. If you need a job or are looking to find the next important contributor to your team, this is the best way to get it done in Kansas.”

As concerns for Kansans’ health and safety remain high due to COVID-19, the Department of Commerce will maintain the Virtual Job Fair system for the foreseeable future. The next virtual fair is scheduled for March 23 through 25.

Job seekers can now upload their most recent resume to their Virtual Job Fair account. If you require assistance, please contact your local workforce center at (877) 509-6757 to schedule an appointment.

About KANSASWORKS

KANSASWORKS is a web-based job-matching and labor market information system. KANSASWORKS provides job seekers, employers, and training providers with easy-to-use tools that support a wide range of activities. As a service of the public workforce system, KANSASWORKS is completely free for all Kansans to use. Learn more at kansasworks.com.

About the Kansas Department of Commerce

As the state’s lead economic development agency, the Kansas Department of Commerce strives to empower individuals, businesses and communities to achieve prosperity in Kansas. Commerce accomplishes its mission by developing relationships with corporations, site location consultants and stakeholders in Kansas, the nation and world. Our strong partnerships allow us to help create an environment for existing Kansas businesses to grow and foster an innovative, competitive landscape for new businesses.

Governor Laura Kelly Announces New Effort to Support Kansas Businesses in COVID-19 Recovery

~Hospitality Industry Relief Emergency Fund has been converted from loans to grants~

TOPEKA – Governor Laura Kelly today announced that funding provided to Kansas’ hospitality industry through the Hospitality Industry Relief Emergency (HIRE) Fund has been converted from bridge loans to grants.

Originally established as a working capital loan program through NetWork Kansas, these funds will no longer need to be paid back. Businesses that have made repayments will be reimbursed.

“There’s nothing more important my administration can do than give Kansas businesses the long-term, continued support they need to not only recover from the pandemic but prosper now and into the future,” Governor Kelly said. “In communities of all sizes, hospitality businesses provide a source of shared space and shared identity. This action allows the loan dollars we delivered at the beginning of the pandemic to no longer need to be paid back, helping businesses maintain operations as we work to recover from the challenges brought about by COVID-19.”

Governor Kelly joined Lieutenant Governor and Commerce Secretary David Toland today at Jenny Dawn Cellars in Wichita for the announcement.

“Hospitality businesses like restaurants, bars, lodging facilities, conference centers and event spaces were among the businesses hit hardest by closures, cancellations and social distancing requirements,” Lieutenant Governor and Commerce Secretary Toland said. “Working with our wonderful partners at NetWork Kansas, we moved quickly to roll out a working capital loan program that delivered millions of dollars to hundreds of hospitality businesses in communities statewide. Today, we’re announcing an important step forward in helping these businesses get back on their feet and recover from a very difficult situation.”

The HIRE Fund was established in March of 2020 to provide immediate relief to Kansas hospitality businesses faced with revenue losses due to COVID-19. In total, $5 million was delivered to 344 businesses in communities statewide.

“We were happy to play a small role in assisting Governor Kelly and the Department of Commerce during the HIRE fund process,” said Erik Pedersen, Vice President of Entrepreneurship for NetWork Kansas. “NetWork Kansas values and respects all of the hospitality-industry businesses, as well as all other Kansas businesses as they navigate these difficult times.”

All HIRE recipients will receive an email with details on the process and timeframes involved with this conversion. The Department of Commerce will notify the partners/organizations that are assisting with collections to stop collections and forward all funds to NetWork Kansas for reconciliation.

Businesses can expect the process of issuing repayment and other paperwork to be completed in the next 30 days.

About the Kansas Department of Commerce

As the state’s lead economic development agency, the Kansas Department of Commerce strives to empower individuals, businesses and communities to achieve prosperity in Kansas. Commerce accomplishes its mission by developing relationships with corporations, site location consultants and stakeholders in Kansas, the nation and world. Our strong partnerships allow us to help create an environment for existing Kansas businesses to grow and foster an innovative, competitive landscape for new businesses.