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State Says It Stopped $9M In Fraudulent UI Claims

State officials said they have uncovered an unemployment insurance scheme involving nearly 600 fraudulent claims.

Labor and Workforce Development Secretary Rachel Kaprielian said the claims had been made through the department's online system since March, and appear to be the work of organized scammers who may have struck in other states as well.

Kaprielian said Thursday that an early detection system caught a pattern of suspicious claims and prevented about 500 from being processed, saving the state $9.3 million. She said about $280,000 in fraudulent claims may have been paid.

No arrests have been made and Kaprielian said the information has been turned over to the U.S. Labor Department's inspector general for further investigation.

She also said there was no data breach involved.

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