The Labor Department's Office of Inspector General (OIG) has determined that just under $1 billion in COVID-era unemployment benefits has not been used and could be subject to fraud.

"My office has warned that, absent swift action, US taxpayers risk losing nearly a billion dollars in fraudulently obtained benefits," Inspector General Anthony D'Esposito said in a statement.

The OIG determined that $720 million in unemployment insurance benefits remains on prepaid debit cards, with another $192 million moved to state unclaimed property offices.

"This is taxpayer money and it demands immediate attention," D'Esposito said. "We've done the investigative work. We've identified where the money is. There is no excuse for delay, and no acceptable outcome other than returning these dollars to the American people."

One of the prepaid cards alone holds about $76,000, according to the OIG.

Residents in most states can receive unemployment benefits on prepaid debit cards, which do not require a bank account or the submission of financial information to the government.

Depending on the state, recipients can also be paid through direct deposit or paper checks.

D'Esposito's team urged the Labor Department's Employment and Training Administration to send guidance to states about recovering the funds.

"Fraud isn't a victimless crime," D'Esposito, a former GOP congressman, said in the statement.

"Every dollar stolen is a dollar that families don't have for groceries, rent, healthcare, or gas. When we root out fraud, we protect taxpayers and lower the real cost of living," he added.

The findings came after investigators analyzed approximately 6.5 million prepaid debit cards that were used during the pandemic to pay benefits.

The OIG's work so far has led to $2.2 billion in recovered funds, charges against 2,300 people and 1,800 convictions.

Last year, the Small Business Administration found that it had disbursed up to $200 billion in "potentially fraudulent loans" through its pandemic relief programs.

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