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AIAAIC-015

Michigan MiDAS unemployment insurance fraud detection

MiDAS (Michigan Integrated Data Automated System ) is a n automated information system used by Michigan's Unemployment Insurance Agency (UIA) to collect unemployment taxes from employers and to pay unemployment insurance benefits to eligible claimants. A new MiDAS system was introduced in 2013 to ensure that unemployment checks went only to people who deserved them, increase UIA’s efficiency and responsiveness to unemployment claims, and reduce UIA’s operational costs by cutting over 400 workers. Devised, developed and implemented by software companies SAS Institute , Fast Enterprises , and CSG Government Solutions, the new system searched records of employers and claimants in its database, then flagged people for potential unemployment fraud. It then sent questionnaires to an email address on the UIA website that 'recipients may not have had reason to monitor', gave them 10 days to respond, and sent a letter informing them they had been charged with fraud. After a 30-day appeal period, the system began dispersing wage and tax refunds, according to Undark .

Organisation involved
Michigan Unemployment Insurance Agency (UIA)
Product, system or model
Michigan Integrated Data Automated System (MiDAS)
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This incident was imported from AIAAIC and is used under CC BY-SA 4.0. Our additions to it — the structured fields, the translation, the checks against other reports — are published under the same licence.

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