McLean, Va. – September 18, 2026 -- ID.me and Plaid have launched a partnership allowing government agencies to verify a benefits claimant's identity and confirm their linked bank account belongs to them before disbursing funds, addressing a gap that contributed to $5.6 billion in unemployment insurance improper payments in fiscal year 2025.
Improper payment rate hit 14.9% for the fourth straight year
According to the Government Accountability Office, the 14.9 percent improper payment rate for unemployment insurance exceeded the federal standard for four consecutive years. Agencies have strengthened identity verification but lacked equivalent controls over where payments land, allowing claimants to pass identity checks and then enter a bank account that is not theirs.
ID.me verifies identity while Plaid confirms the bank account in one flow
Under the partnership, ID.me verifies the claimant's identity and Plaid verifies the associated financial account, checking account ownership at the time of the transaction and matching it against the verified identity before funds move. Recipients link their bank account within the benefits application flow itself, replacing manual processes that previously required mailed voided checks or caseworker review queues running days to weeks.
Partnership extends coverage to regional banks, credit unions, and digital-first institutions
The integration reaches financial institutions that static databases often fail to cover, reducing the number of eligible recipients turned away because of where they bank. Agencies also receive a dated audit record pairing verified identity with the paid account, supporting federal compliance requirements, while recipients control consent and limit data shared to what the check requires -- no account credentials or transaction history transfer to agencies.
Executives frame the gap as a source of billions in missing benefits
"Identity verification tells an agency who is asking to be paid, but it does not tell them where the money is going,