Natural State News

In response to rampant unemployment fraud, the state of Arkansas has passed a bill that will strengthen the state's fraud prevention abilities.

On April 14, Arkansas Gov. Asa Hutchinson signed HB1765 into law, eventually becoming Act 667, according to Natural State News. The law expands the government’s ability to recover fraudulently acquired benefits, requires unemployment recipients to be cross-referenced with lists of incarcerated individuals, and increases use of the integrity data hub to prevent and detect fraud.

According to the text of the bill, “By July 1, 2021, the director of the Division of Workforce Services shall adopt and implement internal administrative policies and business processes: to pursue recovery of improper overpayments of unemployment,” and “allow an employer to notify the Division of Workforce Services that an individual has refused an offer of suitable work, which shall be reviewed by the director or his or her designee for a determination as to continued eligibility for benefits.”

Zoe Calkins, communications director for the Arkansas Department of Commerce, Division of Workforce Services, told Natural State News that the Department of Commerce has already implemented numerous provisions of Act 667, including the anti-fraud measures.

"While Act 667 further ensures that fraud prevention and detection measures are met and prioritized, most of the procedures required by Act 667 were already fully implemented within the Arkansas Division of Workforce Services (DWS)," Calkins said in an email to Natural State News. "DWS will continue to review our policies around these procedures and will provide the required report regarding its fraud detection and prevention progress to the Legislative Council by Dec. 31, 2023, at which time DWS anticipates having a new unemployment system that will enhance the agency’s ability to detect and defer fraud."

The state has investigated over 27,000 pandemic unemployment claims and 10,000 unemployment insurance claims for possible fraud, according to the Arkansas Secretary of Commerce Mike Preston, Natural State News reported. Hutchinson himself was among the thousands of victims of unemployment fraud.

Act 667 became effective none too soon. THV11 reported a significant unemployment fraud scam via text messages attempted to trick residents.

In response to these text message scams, the Arkansas Division of Workforce Services tweeted that it would never send anyone a text about unemployment. Additionally, THV11 reported that Arkansas Attorney General Leslie Rutledge released a series of tips on how to avoid fraud scams and encouraged anyone who has experienced a potential scam to report it.

Unemployment fraud in Arkansas reached improper payments of $31 million by February 2021, according to Arkansas Democrat-Gazette. 

Act 667 contained an emergency clause in section 6, which allowed the law to go into immediate effect once it was signed by the governor.