Recover COVID Unemployment Fraud in Banks Act

Key Points

• The bill creates a federal task force called the "Recover Pandemic Unemployment Funds in Banks Task Force" to track down and recover pandemic unemployment money that was fraudulently obtained or never claimed. The task force includes leaders from the DOL, Treasury, FDIC, CFPB, and the Attorney General's office.
• The Secretary of Labor will appoint a National Recovery Coordinator to lead the effort, working across multiple federal agencies to identify improper pandemic unemployment payments sitting on prepaid debit cards at banks or in state unclaimed property offices.
• Banks and state agencies will get clear guidelines on how to identify fraudulent payments and a legal pathway to return them. The federal government will reimburse states for all costs they incur while helping with the recovery process.
• The bill extends the statute of limitations for prosecuting pandemic unemployment fraud to 10 years from the date of the crime, giving investigators and prosecutors significantly more time to bring cases. However, it cannot revive cases where the statute of limitations has already expired.
• The task force will also create resources to help identity theft victims whose personal information was used to file fraudulent unemployment claims during the pandemic, developed in coordination with the Consumer Financial Protection Bureau.