The new solution, called ID Risk Analytics, is a mashup of Pondera’s AI-powered software and Thomson Reuters' CLEAR tool. CLEAR brings in both public and proprietary data — including names, addresses, social security numbers, corporate filing information, etc. — which Pondera then analyzes for potential fraud or irregularities.
The solution is already in use in California, and currently analyzes about 30 percent of unemployment claims in the U.S., according to a press release.
California has found itself at the epicenter of the unemployment fraud discussion during the pandemic. While every state found itself facing an incredibly steep increase in UI claims as the economy shut down last year, and many of them had to contend with fraudsters infiltrating the system, California faced a particularly huge problem. Using the names of prisoners, fraudsters managed to claim more than $800 million from the state.
The state has used Pondera’s technology to prevent $60 billion worth of fraudulent claims, the company wrote in the statement.
“States are faced with enormous pressure and historic levels of unemployment, and while they’re trying their best to reduce fraud, they are struggling with limited resources and antiquated technology and are often defeated by criminals,” said Jon Coss, Thomson Reuters' vice president of risk, fraud and compliance. “ID Risk Analytics is allowing state agencies to capture anomalies and detect fraud before it is paid out in taxpayer dollars.”
