SECO Ignored High-Priority IT Warnings Before Unemployment System Failure

The Swiss State Secretariat for Economic Affairs (SECO) proceeded with the launch of its SIPAC 2.0 unemployment insurance system despite audits identifying 71 security flaws, 27 of which were labeled “highly priority” or “critical,” according to reporting by Blick. These technical failures led to thousands of beneficiaries facing delayed payments starting in January 2026.

Audit Reports Warned of “Unnecessary Complexity”

Documents obtained via transparency laws by Blick reveal that SECO commissioned an audit of the SIPAC 2.0 system months before its deployment. The audit flagged 71 security vulnerabilities and criticized the system’s architecture for being unnecessarily complex. The project, which began in 2016, had already been criticized multiple times by the Swiss Federal Audit Office for repeated failures in project management and steering.

A sixth audit specifically indicated that postponing the launch was a viable option. However, SECO chose to move forward with the rollout. Between 2023 and 2024, the system had been partially implemented for specific benefits before the full-scale launch that resulted in the January disruptions.

Discrepancies in SECO’s Risk Assessment

There is a documented gap between the audit findings and SECO’s official stance. In July 2025, SECO stated that reports on security and architecture “had not revealed any pertinent risk” that would prevent the January 2026 launch. The agency claimed that high-priority recommendations were either already implemented or would be by the end of the year.

Following the system’s failure, Jérôme Cosandey, of the Labor Directorate at SECO, told the RTS in February that the agency had identified certain risks, but they were “poorly evaluated.” In response to Blick, SECO maintained that all pertinent security issues were resolved before launch and argued that the scale of the subsequent problems was unpredictable.

Impact on Unemployment Funds and Beneficiaries

The failure hit the end-users hardest. Jean-Claude Frésard, the director of the Caisse cantonale de chômage valaisanne and the president of the association of public unemployment funds in Switzerland, told RTS that while the migration from an aging system was necessary, the introduction was catastrophic for beneficiaries. Frésard noted that unemployment funds had requested load and performance tests, and SECO guaranteed those tests had been completed.

While SECO later announced that 85% of unemployment benefits had eventually been paid, the fallout persists. Some beneficiaries still await payments, and new claimants have reported waiting several months for their first disbursement.

Potential State Liability for System Failures

The decision to ignore audit warnings may have legal consequences. Alexandre Gazzola, a lawyer specializing in insurance law, told RTS that if competent authorities knew of significant risks through multiple audits and chose to maintain the deployment when a postponement was possible, the question of state liability could arise.