Colorado Unemployment Benefits Require Updated ID Process To Prevent Fraud

DENVER (CBS4) - The Colorado Department of Labor and Unemployment has announced it will begin implementing a new identification application to battle fraud.

"Between PUA and regular unemployment, we've paid out about $10 million in fraudulent claims," Cher Haavind, CDEL Deputy Executive Director.

Millions of dollars have been lost to thieves. That's part of the reason why the new pandemic assistance and standard unemployment claims process will require more stringent verification. It's a condition set by the US Department of Labor to process extended benefits.

"I will tell you they have the capability where it uses a little more of a biometric match where it will be using facial recognition technology," Phil Spesshardt, CDLE Benefits Services Manager said.

Leaders at the Colorado Department of Labor and Employment revealed the new company contracted to verify identity is Virginia-based ID.me.

A recent video from the company explains its automated process is much harder to fake. In certain instances, a person has to demonstrate physical possession of a government issues ID.

However, ID verification isn't the only thing CDLE attributes to delays.

"Congress failed to act until right toward the end of the program that last week of December, the President then failed to send that into law until December 27th," Spesshardt added.

That caused a gap week, then the US Dept. of Labor didn't send guidance to Colorado Dept. of Labor until Jan. 8.

"We know, unfortunately, some people will get caught up in these new fraud triggers in the state, in MyUI+ and we're doing everything we can to put in processes to free those legitimate claims as possible," Joe Barela, CDLE Executive Director said.

The ID verification is required to be implemented by Jan. 27. CDLE also said it will still take until the end of January or beginning of February to open its system for PEUC/ PUA claims.

A town hall is being planned by CDLE for Jan. 20 at 9 a.m.