This seems ... excessive

According to the state, much of the fraud is due to identity theft; I know nothing about collecting unemployment, but I’m guessing that, these days, claimants are no longer required to show up in person at the unemployment office each week, prove their identity, and provide evidence that they’ve been actively looking for work. You’d still have fraudulent claims, I’m sure, but computer scammers from around the country and around the globe would be blocked, and that’s almost certainly the bulk of this fraud.