Departments of Labor and Treasury Launch Data Sharing Platform to Fight Insurance Fraud

The U.S. Departments of Labor (DOL) and Treasury unveiled a collaborative initiative aimed at bolstering fraud prevention measures in unemployment insurance to states via a data-matching system.

State agencies will gain access to key resources from the “Do Not Pay Working System” via the UI Integrity Data Hub. 

Spearheaded by the National Association of State Workforce Agencies’ UI Integrity Center, this centralized platform enables multi-state data matching, empowering agencies to more effectively combat unemployment insurance fraud and minimize improper payments.

“To mitigate fraud risks and reduce improper payments, state unemployment agencies need access to the best controls. This partnership will allow states to access critical Do Not Pay data sources, which means they will be able to use existing infrastructure like the UI Integrity Data Hub more effectively to ensure the accuracy of unemployment payments,”  said José Javier Rodríguez, Assistant Secretary for Employment and Training.

The Department of Labor is responsible for supervising the operations and functions of the UI Integrity Center, which includes managing and upkeeping the UI Integrity Data Hub. 

Recently, it allocated funding from the American Rescue Plan to facilitate the seamless integration of this fresh data source.

Earlier this year, DOL received investments of US$42 million from the Technology Modernization Fund (TMF) for tackling security vulnerabilities and modernizing outdated technology.

The primary investment is designated to support the Department of Labor's Office of Workers' Compensation Programs (OWCP) in replacing the obsolete Integrated Federal Employee Compensation System (iFECS).