North Carolina audit reveals $47.2 million in unemployment fraud

The North Carolina Office of the State Auditor released two reports on June 17, 2026, indicating that nearly $50 million in unemployment benefits were fraudulently claimed in the state. The reports found that $47.2 million of $168.8 million in unemployment benefit overpayments made by the Department of Commerce between April 2021 and March 2025 were fraudulent. The Division of Employment Security recovered only $12.2 million in fraudulent overpayments during this period. State Auditor Dave Boliek criticized state leaders for the ongoing issue, stating that the government should not ignore such problems. He noted that North Carolina's improper payment rate for unemployment benefits has consistently exceeded the 10% limit and the national average for the past nine years, primarily due to errors related to work search requirements, benefit year earnings, and separation determinations. The audits coincided with a letter from the U.S. Department of Labor urging all states to take immediate action against fraud in the unemployment insurance program. Labor Department Inspector General Anthony D’Esposito emphasized the need for accountability and warned that states failing to protect taxpayer dollars could face consequences, including the withholding of administrative funds.