Department of Labor deploys strike force to New York to recover hundreds of millions in unemployment fraud payments

Theft/Property — New York, NY — reported 2026-07-15

SUMMARY

The Department of Labor has deployed a strike force to New York to recover hundreds of millions in unemployment fraud payments.

KEY FACTS

• Incident type: Theft/Property
• Location: New York, NY
• Date reported: 2026-07-15
• Suspect: not stated

REPORTED DETAILS

• New York contributed to $750 million in improper unemployment insurance claims.
• The state accounted for $507 million of those claims paid out in 2025.
• New York has only managed to recover 25% of the total overpayments, which is well below the national actual loss prevention average of 69%.
• The federal government says New York has the highest improper payment rate at 23% and the highest unemployment insurance fraud rate in the country at 15%
• A strike team will ensure the system is operating exactly as intended with no underlying issues.