In this issue:

• On Point Technology attends UI Directors Conference as Gold Level sponsor
• Agencies can avoid change order hassles with On Point Technology installations
• Industry News: Missouri Department of Labor aggressively pursues fraud cases
• Did You Know? Investigators can spot scams more easily with Aware

Welcome to the November 8, 2005, issue of BullsEye, the On Point Technology newsletter. Our goal is to keep you up-to-date on the latest unemployment insurance news and developments at On Point Technology.

On Point Technology attends 2005 UI Directors Conference as Gold Level sponsor

On Point Technology recently took part in NASWA's 2005 National Unemployment Insurance Directors Conference and Legal Issues Forum, held October 24–27 in Salt Lake City, Utah. The company exhibited as a Gold Level sponsor of the event and was represented by Mike Lorsbach, Bob Yokavonus, Hit Mistry and Woody Tucker.

The conference placed much emphasis on UI fraud detection and management, which created an ideal atmosphere in which to showcase On Point Technology's fraud and identity theft detection and management software programs, Barts and Aware. The representatives were most gratified with the positive reception and enthusiastic response the products received, as a large portion of conference participants stopped by the booth for a demonstration—some more than once! The extent of interest was best summed up by one vendor's remark that "it looks like an On Point classroom in here."

On Point Technology thanks Chris Love, Deputy Director, Utah Department of Workforce Services, and his staff for hosting a first-class conference. The facilities were superb, the program was timely and relevant, the food was excellent and the entertainment was second to none. The Utah hospitality was wonderful, with every attention paid to detail and organization, which made for a great experience for all.

Agencies can avoid change order hassles with On Point Technology installations

As On Point Technology representatives travel the country for conferences, meetings and on-site presentations, they have the opportunity to interact with state workforce agencies and get a true sense of the challenges facing unemployment insurance directors and their staffs. A common complaint heard is that agencies are hit with change orders from vendors, often for functionality believed to be included in the original purchase price—sort of like getting a great deal on a new car, and then being told that wheels and seats cost extra. Some agencies have expressed their suspicions that the vendor had the change orders ready in advance, as they were submitted almost immediately once the project was started.

There are steps agencies can take to avoid ending up in these situations. Taking the time to prepare a thorough requirements document will ensure that both the agency and the vendor know the expected project outcomes. Clearly identifying objectives will also help prevent scope creep, where the addition of unnecessary features starts to steer the project away from its original purpose. Agencies should closely manage the vendor's performance, and refuse to accept change orders for work believed to be included in the project as originally bid and awarded. Last, an agency should beware of being up-sold or cross-sold for extra bells and whistles that may be of little or no value in terms of project utility.

However, even taking these precautions may not inhibit an aggressive vendor's efforts to take advantage of change orders to increase the project price. With On Point Technology, agencies can be assured that project implementations will follow exactly as planned. In all of its installations of Barts and Aware, the company has never attempted to inflate the purchase price by submitting a change order. On Point Technology delivers what it commits to; when the company states a price, the software is configured and installed for that amount. For more information on Barts and Aware pricing, contact Bob Yokavonus at 908-526-0426 or e-mail him at robert.yokavonus@onpointtech.com.

Industry News

Missouri Department of Labor aggressively pursues fraud cases — The Missouri Department of Labor and Industrial Relations recently announced that unemployment insurance fraud referrals since January 2005 have resulted in restitution of $23,910.12.

Three cases led to the convictions of individuals who were each sentenced to five years probation and ordered to pay restitution in the amounts of $10,559.12, $7,663 and $5,688.

In addition, six individuals were indicted for fraud after the Department's Division of Employment Security investigated their cases. The individuals were charged with stealing amounts ranging between $5,000 and $10,000.

The Division of Employment Security actively pursues criminal prosecution of individuals who file fraudulent claims. Under Missouri law, workers who are unemployed through no fault of their own and are actively seeking work are eligible to receive up to 26 weeks of UI benefits. Workers must also have worked in covered employment and earned certain qualifying wages to be entitled to benefits.

Do you have a fraud story you'd like to share?
Let us know.

Did You Know?

The best detectives are often those who can think the same way as the crooks they are chasing. The same can be said for unemployment insurance investigators who are on the lookout for organized fraud schemes—to catch the scammer, you need to understand the scam.

If properly planned and thoroughly carried out, the fictitious-employer scam is one of the most difficult UI scams for investigators to detect. The crooks that successfully engage in this scheme do everything that a legitimate employer would do: they obtain a UI registration number, they submit wage record reports for employees and they pay taxes.

The fact is, however, that these crooks set up accounts only to file claims against them. The employees listed on the wage reports don't really exist and the scammer pays just enough taxes to get by—usually the amount needed for the claims to qualify for maximum benefits.
If an investigator knows what to look for, there are plenty of clues within agency data to detect this scam. The problem, however, is that the pattern of abuse doesn't surface when claims are reviewed one at a time. You need to be able to look at all the claims filed against the accounts that exhibit these characteristics in order for the pattern to emerge. You can then discern the suspicious situations and evaluate them further by examining the names, phone numbers and addresses appearing on the claims.

On Point Technology's Aware software features a set of "one-click" audits that can analyze data sources and discover patterns that indicate possible schemes at work, and allow you time to conduct the true detective work of uncovering fraud schemes. To learn more about how Aware can help you detect the fictitious-employer scam and other fraud schemes, call Bob Yokavonus at 908-526-0426 or e-mail robert.yokavonus@onpointtech.com.