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A full review of unemployment fraud cases is being called for after it was discovered that Michigan's automated system for processing unemployment insurance was wrong in flagging fraud cases 93 percent of the time.


The state reviewed cases filed between 2013 and 2015 and found that of the nearly 54,000 cases flagged a fraudulent, almost 50,000 were incorrectly identified.


Penalties and interest collected by the state from unemployment insurance fraud cases in Michigan have jumped from just over $3 million in 2011 to about $155 million this year.


Unemployment Insurance Agency spokesperson Dave Murray says that as of August 2015, the UIA no longer uses the automated system to issue fraud determinations.


Instead, trained staff investigates, reviews and makes the determination in all fraud cases, which includes the additional step of contacting the claimant and/or employer for additional information if needed.



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