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Nearly $1 Billion in COVID Benefits at Fraud Risk

2/17/2026

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Story summary
  • Anthony D’Esposito, Inspector General for the Labor Department, warns nearly $1 billion of unused COVID-19 unemployment benefits is vulnerable to fraud.
  • About $720 million remains on prepaid debit cards, and $192 million sits with state unclaimed property offices.
  • Investigations have led to 1,800 convictions and $2.2 billion recovered.
  • The Small Business Administration reports up to $200 billion in fraudulent pandemic-relief loans, and D’Esposito urges swift Labor Department action.