Florida Unemployment Insurance False Fraud Determinations

Problem Statement

In 2013, Florida released a new unemployment benefits website called CONNECT, built by Deloitte. Applicants immediately experienced issues causing unemployment benefits to be delayed or incorrectly denied. CONNECT created significant hurdles for people claiming benefits and included an aggressive system for flagging application errors called the Fraud Initiative Rating and Rules Engine (FIRRE). For example, FIRRE would flag cases where it detected trivial discrepancies on an application—like if someone’s name on the application was not exactly as it appeared on their driver’s license, or an apartment number was formatted differently.

FIRRE would also flag when multiple people filed claims from the same computer, which disproportionately impacts Black, Latinx, and other people of color who are less likely to have a personal computer or broadband at home than white people. Inconsistencies found by data matches would lock an applicant’s account, requiring intervention by a small group of higher level employees. Claimants had limited time to respond to requests for verification to resolve inconsistencies: 48 hours after an initial phone call and 7 days to respond to the subsequent letter. The hurdles to getting benefits extended beyond the computers, as claims representatives were instructed to hang up on people who offered inconsistent information. The wait times for reaching a claims representative were extensive, and an 8-hour hold time was common during the height of the COVID-related unemployment crisis. At the same time, the system failed to tell the applicant if they entered certain disqualifying information, so people were accidentally approved for benefits they later had to pay back.

In 2019, Florida’s Auditor General released a report on CONNECT and FIRRE. The audit confirmed that many people were not given notice and subsequently had their cases locked, with no caseworker training on how to fix these situations. Since Florida’s launch of CONNECT, claims flagged as “fraudulent” increased more than 600%. By 2015, Florida’s percentage of unemployed people receiving jobless benefits was the worst in the nation, at under 12%, and has stayed the second worst since then. In one report, the system’s fraud detection program identified 70,000 fraudulent claims for 2014, even though there are usually only 60,000-90,000 unique Florida unemployment benefit claims in a given year. Many Flordians claim that the system was “designed to fail” considering the government’s lack of action on the system despite multiple audits and reports concerning its failure.

Status of Issue

After 2019, Florida officials put forth a plan to replace, or at least overhaul, the system. According to the Florida Department of Commerce, the two-year modernization project was completed in July 2023 with about $92.4 million in funding granted by the Florida Legislature, and $8.4 million from the US Department of Labor specifically for promoting access. The Department further stated in October 2023 that “continuous modernization projects” would be scheduled over the next three years. Their focus included “expanded fraud protection” in addition to usual concerns of efficiency and functionality. The estimated costs breakdown for fraud detection programs, including a “Digital ID Verification Solution,” was $3.4 million.

Links to More Information

Presentation on the FIRRE System

2019 Florida Auditor General’s report

Florida took an aggressive approach to unemployment fraud. Was it worth it? - Tampa Bay Times

More evidence that Florida’s unemployment system was designed to fail - Editorial - Tampa Bay Times

Florida’s unemployment fix could cost $244 million - Tampa Bay Times

2021 ISF Report - Florida Department of Economic Opportunity Improved Delivery of Reemployment Assistance Benefits – Final Report

Florida Commerce Reemployment Assistance Modernization website (2023 system)