The Tennessee Department of Labor and Work Force Development has investigated more than 3,300 claims of fraud involving unemployment benefits since mid-March of this year. Officials say that is less than a half percent of the 795,000 claims.
Tennessee Department of Labor & Workforce Development has implemented LexisNexis InstantID from LexisNexis Risk Solutions as an added measure to prevent people from fraudulently applying for unemployment benefits.
LexisNexis InstantID, integrated into Tennessee’s unemployment insurance claims process, helps to confirm the applicant’s identity before processing their unemployment insurance claim. The program uses identity analytics that combine billions of public records and advanced linking technology to generate a knowledge-based quiz, designed so only the true individual would be able to answer the questions. This process of verifying and authenticating the applicant, called identity proofing, enables Tennessee to know whether the individual filing the claim is truly the owner of the identity.
Since implementing LexisNexis Risk Solutions, more than 75,000 claimants have engaged in the identity verification process. Eighty-percent of these claimants passed and were able to submit an unemployment claim. When the system prevents a person from filing, they must contact TDLWD for assistance. Less than half of the 20 percent who fail to answer the security questions actually made contact with TDLWD to correct any issues.
There is the possibility that those failing the verification process, but not contacting us could have been attempting to file fraudulent claims. If that is the case, the potential cost savings for Tennessee’s trust fund could be as high as $48.6 million, just in the first few months of operation.
“By authenticating the identity of our claimants during the initial claims process it reduces the risk of the department making improper payments from the unemployment trust fund,” said Unemployment Insurance Administrator Linda Davis. “This keeps the trust fund at a higher level and potentially reduces employer taxes.”