2026-09-20T23:22:28.549Z
- publishedAt:
Not provided→ 2016-12-18T00:00:00.000Z
SOURCE-LINKED INTELLIGENCE
Michigan's Unemployment Benefits Algorithm MiDAS Issued False Fraud Claims to Thousands of People
Michigan’s MiDAS system falsely accused over 34,000 people of unemployment fraud from 2013 to 2015, which reportedly caused financial ruin for many. The automated system was designed to cut costs, but it adjudicated fraud cases without human oversight. That led to an 85% error rate. Victims faced wage garnishments, some lost homes, and some faced bankruptcy. Despite early warnings, Michigan’s UIA defended MiDAS until lawsuits and federal pressure forced reforms. Legislators have been seeking compensation for those wrongfully accused.
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- recordType
- incident-report
- evidenceStatus
- reported
- region
- Global
Reported occurrence date: 2013-10-01T00:00:00.000Z
Evidence & attribution
- AI Incident Database
- AI Incident Database · 2016-12-18T00:00:00.000Z
AI Incident Database, Responsible AI Collaborative; McGregor (2021), Preventing Repeated Real World AI Failures by Cataloging Incidents. Incident-specific contributor credits are available at each citation link. Metadata adapted; article text excluded.
License: CC BY-SA 4.0
First collected: 2026-09-19T22:50:59.123Z. This is not the publication date.
Observed changes
AIIC observation times, not verified publisher revision times. Up to eight recent revisions.