Authorities Target Unemployment Benefits Scammers

Letters have gone out to 80,000 people across New York State, whom authorities say scammed the unemployment benefits system by collecting checks while they were actually working.

The letters warn that cheaters could get into trouble with the Internal Revenue Service if they don't pay back the money they owe within 60 days. Under the terms of a new agreement between the state and the federal government, accused benefits scammers will have their future tax refunds withheld by the IRS.

"Some of them thought that they could evade forever their obligation to pay back this money, but now we have a way of collecting the money that we didn't have before," said Colleen Gardner, New York state's commissioner of labor.

The money that is returned will go back into the state unemployment trust fund, which is deep in debt.