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State of Michigan Benefits from Veris Services

From the Information Technical Support Center (ITSC) Unemployment Insurance Website, Sponsored by the U.S. Dept. of Labor

State: Michigan

Description: This is a proactive approach to detect fraudulent social security numbers before "claimants" can file for or receive unemployment benefits (e.g., against deceased individual numbers). As such, it preserves the integrity of the Trust Fund and serves as a deterrent to false filings. This program was initiated in 1998 as a joint effort between the Benefit Detection / Determination Unit and Information Technology.

Hardware/Software: VERIS (Socal Security Number Validation and Identification Services), Security Software Solutions, P O Box 30125, Tucson, AZ 85751-0125, Web Site: Http://www.veris.info

Lessons Learned: IT provides a daily file of all new claims taken. This file contains the name, birth date, and SSN. It is downloaded to a disk and run against the VERIS software on a personal computer. An error listing is created showing suspect SSNs or a problem with one or more of the key fields (name, DOB, SSN). This listing is reviewed and corrections (e.g., putting an erroneous year in the DOB) are made or the individual is referred to the Social Security Administration for confirmation of his/her number, the local agency office is advised of data entry errors needing correction, or fraud determinations are written.

Other Information: In the 18 months preceding 9-11-99, over 666,060 new claims were processed through VERIS. Of these, 3,113 failed to pass the validity check and required additional investigation by the agency. 271 claims were denied. Using the statewide average number of benefit weeks paid (10.3) multipled by the average benefit entitlement of $234.63 multipled by the number of denied claims, a savings of $654,922.99 was established. This is benefits money saved due to this program.

Seen another way, 3,030 weeks of benefit payment have been saved, with the savings passed on to employers through lower experience ratings and lower administrative costs. These savings far outweigh the $80,000 cost of an analyst, the use of IT resources, and the purchase of the VERIS software.

Overall, this project, to date, has returned over $8.50 Trust Fund dollars for every dollar spent to operate the program.

Date Posted: 2/19/00

 
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