U.S. DEPARTMENT OF LABOR
Employment and Training Administration
Washington, D. C. 20210

CLASSIFICATION

UIS

CORRESPONDENCE SYMBOL

TEUDPR

ISSUE DATE

February 1, 1999

RESCISSIONS

None

EXPIRATION DATE

February 28, 2000

DIRECTIVE

:

UIS INFORMATION BULLETIN NO. 05-99

 

TO

:

ALL REGIONAL ADMINISTRATORS

 

FROM

:

GRACE A. KILBANE
Director
Unemployment Insurance Service

 

SUBJECT

:

Third Party Fraud Project -- Final Analysis

In the early 1990's, fraud schemes were detected and prosecuted involving third parties who were completing work search and continuing eligibility forms for claimants who were not available for work or searching for work. In response, a task force was established to identify lessons to be learned for the prevention of such occurrences in the future. Several actions evolved from the task force effort, including a cooperative agreement between the UIS and the California agency to develop a prototype third party fraud profile system; the final report was issued in 1995.

Additionally, UIS entered into a cooperative agreement with the Texas agency in 1994 to provide an analysis of third party involvement in the UI process and to attempt to quantify the detection/deterrence effect of in-depth Eligibility Review Interviews (ERIs) and investigations. The project was completed in 1997. Although no significant recommendations materializd regarding third party fraud, the project did demonstrate the value of in-depth ERIs. Attached is the final analysis of the project.

For further information, please call Bob Whiting on (202) 219-5211, x143.