Bank of America fined over $225M over botched handling of unemployment benefits during the pandemic

Friday, July 15, 2022
A Bank of America ATM is seen, Wednesday, Feb. 3, 2021, in Winchester, Mass.

Bank of America is being fined over $200 million for the poor handling of unemployment benefits during the pandemic.

In late 2020 and through mid-2021, the company installed a new automatic system for catching fraud.

The fraud filter was faulty though, unlawfully freezing customers' prepaid unemployment benefit accounts, CNN reported.

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More than 12 states used the unemployment benefits program.

Now the company is being fined and will have to repay those impacted by the mistake, which could amount to hundreds of millions of dollars.