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Report Title: Verification of Social Security Numbers Could Prevent Unemployment Insurance Payments to Illegal Aliens
Report Number: 04-98-001-03-315
Issue Date: March 2, 1998
The OIG conducted a limited scope audit of the use of Social Security Number (SSN) verification techniques to identify ineligible Unemployment Insurance (UI) claimants. We used computer programs to screen four states' (Florida, Georgia, North Carolina, and Texas) claim files for claimants using SSNs in ranges not assigned by the SSA or using deceased persons' SSNs.
Some 2,927 claims totaling $3,206,675 were paid individuals who had filed for UI benefits under SSNs that had either not been issued or were issued to deceased individuals. Our testing showed a substantial portion of these claims were filed by illegal aliens.
We obtained adequate evidence of the legal status of 241 claims in our samples and found 54 percent (129) of the claimants were illegal aliens, who had improperly received $200,291 of UI benefits. Many claimants we interviewed admitted using counterfeit identification to obtain employment and subsequent UI benefits.
Screening of UI claimants' SSNs would prevent millions of dollars in UI benefits from being misspent annually. Federal requirements establish that each claimant provide his or her SSN to the State Employment Security Agencies (SESAs) as a condition for UI benefits. Thus, benefits may not have to be paid to claimants who provide an invalid SSN until discrepancies are resolved.
Recommendations we made to ETA include assisting the states in developing and implementing means of screening UI claimants for valid SSNs, and delaying or deferring benefit payments to claimants without valid SSNs. We also recommended that ETA seek changes to immigration laws to allow states to delay payments to alien claimants where there are material discrepancies in alien information.
ETA responded that significant improvements could be made in areas that our audit report addressed. A UI directive is being prepared to deny payments to alien claimants who do not have reasonable evidence of satisfactory immigration status. Initiatives currently being considered includes on-line verification of SSNs and feedback to employers from the National Directory of New Hires. ETA disagreed with our recommendation that UI benefits should not be paid to individuals without valid SSNs. We believe ETA's position is inconsistent with the Deficit Reduction Act of 1984 which requires that UI claimants provide their SSNs in order to receive benefits, and continue to recommend delay or deferral of benefits to claimants without valid SSNs.