They’re behind bars, but that didn’t stop 7,600 prison inmates from trying to collect unemployment insurance.
The state Labor Department reported Monday that it rooted out $500 million in fraud in the benefits program over the last four years — including by prisoners who couldn’t possibly have been looking for a job.
The overwhelming majority — 85 percent — were automatically blocked from receiving a dime after probers cross-checked unemployment databases against jail records. That still left about 1,100 who slipped through before being caught, usually within a couple of weeks.
Dozens of inmates in The Bronx alone were hit with new charges for insurance fraud while incarcerated for other offenses.
Unemployment benefits — currently a maximum of $420 a week — are deposited into a bank account or placed on a benefits card. To continue collecting the money, the unemployed have to check in weekly by phone, but inmates are restricted from making outside phone calls.
So the fraudsters would have relatives or friends — using their personal ID number and Social Security numbers — to make the calls so the cash would keep coming, officials said. Overall, Labor officials said improved data mining and blocking programs helped prevent $500 million in potential insurance fraud attempted by 258,000 people — including 40,00 individuals who applied from overseas.
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