LexisNexis Helps New Jersey Department of Labor and Workforce Development Prevent $4.4 Million in Unemployment Insurance Fraud

WASHINGTON, DC and ATLANTA, GA--(Marketwired - Jun 18, 2014) - LexisNexis® Risk Solutions today announced that it has helped the New Jersey Department of Labor and Workforce Development (NJLWD) prevent $4.4 million in unemployment insurance fraud over the past 17 months.

Approximately 646 instances of attempted identity fraud have been prevented using the LexisNexis suite of Identity Management solutions to verify and authenticate the identities of individuals applying for unemployment insurance benefits through the Labor Department's website. The LexisNexis technology, integrated into New Jersey's unemployment insurance claims process, helps confirm the applicant's identity before processing their benefit applications. The process is called identity proofing and it is an important part of a larger anti-fraud program that has saved New Jersey's Labor Department nearly $450 million since 2011.

"Identity theft is the fastest growing crime in the U.S., so we have embarked on an aggressive campaign to protect our claimants' identities and eliminate unemployment fraud," said Ronald Marino, the department's Assistant Commissioner of Income Security. "By identity proofing applicants before processing their applications, we know whether the person seeking benefits is truly the individual applying for them. This approach has already saved taxpayers millions of dollars by ensuring only those who need benefits receive them."

As part of the initiative, LexisNexis is responsible for processing requests of unemployment insurance applicants to verify and authenticate the identities of individuals seeking unemployment benefits. As part of this process, applicants may be asked a series of questions, which were developed to verify and confirm the applicant's identity and to minimize the risk of fraud.

No unemployment insurance benefit payments are issued until NJLWD is confident that the applicant's identity has been properly verified. Applicants are asked questions that relate to their individual backgrounds, based on information derived from public records. If the applicant elects not to answer the questions presented as part of the identity proofing process, they will be required to report in-person to one of the designated NJLWD offices with required documentation to verify their identity. 

"We applaud New Jersey's commitment to detecting and preventing fraud and its innovation in being the country's first labor department to leverage this technology," said Haywood Talcove, Chief Executive Officer, Government, LexisNexis Risk Solutions. "Fraudsters steal identities and hide behind the anonymity of the Internet, taking benefits from those who need them most. We are honored to support New Jersey in its identity verification program and are committed to helping the state continue to prevent unemployment insurance fraud."

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