Labor Department Deploys Strike Force to Recover $507 Million in New York Unemployment Fraud
Updated
Updated · Fox News · Jul 15
Labor Department Deploys Strike Force to Recover $507 Million in New York Unemployment Fraud
3 articles · Updated · Fox News · Jul 15
Summary
$507 million in New York unemployment overpayments from 2025 is now the target of a Labor Department strike force embedded in the state to pursue recoveries, criminal referrals and fraud investigations.
New York drove $750 million in improper unemployment claims and is losing nearly $2 million a day, according to the DOL inspector general, with the state posting the nation’s highest fraud rate at 15% and improper payment rate at 23%.
Only 25% of those overpayments have been recovered so far, far below the 69% national loss-prevention average, prompting the Trump administration to escalate beyond standard technical assistance.
The operation pairs national unemployment experts with OIG special agents on the ground under the White House Task Force to Eliminate Fraud, created by Trump in March and led by Vice President JD Vance.
Governor Kathy Hochul’s office said New York is cooperating and has already tightened anti-fraud measures since the pandemic, while pledging to keep working with law enforcement.