economy
State audit uncovers nearly $50 million in North Carolina unemployment fraud
North Carolina released a pair of audits on Wednesday, finding nearly $50 million in unemployment benefits fraud in the state in recent years.
TL;DR
- North Carolina audits found $47.2 million in fraudulent unemployment benefit overpayments between April 2021 and March 2025.
- The state's Department of Commerce recovered only $12.2 million of these fraudulent overpayments.
- State Auditor Dave Boliek criticized state leaders for years of inaction on unemployment insurance fraud.
- North Carolina's improper payment rate for unemployment benefits has exceeded 10% and the national average for nine years.
- The U.S. Department of Labor is demanding immediate action from all states to combat unemployment insurance fraud, threatening consequences.
- The Labor Department is particularly concerned about fraud in New York, Illinois, and California, threatening to withhold administrative funds.