The Office of the Inspector General of the United States estimates that USD 39 billion that was paid in unemployment benefits has been wasted.
Under the CARES Act, Americans received a weekly unemployment benefit of USD 600 in March.
But the supervisor’s report found states were having difficulty allocating these benefits, and many received payments illegally.
The report said that 42 states didn’t report overpayments, and 40% of states didn’t conduct necessary checks to identify inappropriate payments.
The supervisor said the problems with the program were likely due to insufficient staffing and outdated technology that prevented fraudulent payments from being detected.
Earlier, the US tax service mistakenly sent checks to thousands of Japanese retirees for almost USD 1,500 000, writes the Financial Times.
As a result, crowds of customers have formed in banks in Tokyo trying to withdraw money.
The distribution of checks was carried out as part of aid to the US economy and Americans worth almost USD 2 billion.
By mistake, the lists included the Japanese who previously worked in the US and are now eligible for a small pension from that country.
The US Internal Revenue Service said the Japanese should send the checks back.
