Unemployment Insurance Fraud Information For Employers
States across the nation have seen a surge in unemployment benefit fraud, largely associated with identity theft. There has not been a breach of information stored by the Arizona Department of Economic Security , however, criminals are obtaining individuals personal information using phishing scams, previous corporate data breaches, and other tactics and using this stolen information to file for Unemployment Insurance and Pandemic Unemployment Assistance benefits. Use the Reporting Suspected Unemployment Fraud Toolkit and learn how to protect your business and employees from UI fraud.
Verifying Employee Unemployment Fraud
Indication Of A Possible Covid
Scammers behind the PUA fraud appear to be using Social Security numbers and other personally identifiable information to apply for and receive PUA benefits. In many situations, the victims are unaware that their personal information has been compromised. Some signs that personal information may have been compromised:
For employers – if you receive notification a claim has been filed for one or more of your employees who are still working.
Also Check: How Do I Know If I Get Unemployment Benefits
What Are The Penalties For Unemployment Insurance Fraud
All states are required to assess a penalty of not less than 15% of the amount of the fraudulent payment. Other penalties under state unemployment insurance laws generally include criminal prosecution with fines and/or incarceration required repayment of fraudulently collected benefits forfeiting future income tax refunds and/or permanent loss of eligibility for unemployment compensation. Commission of unemployment benefit fraud may also be prosecuted by the U.S. Department of Justice in federal courts under 18 U.S.C § 1341 or other appropriate federal statutes.
Understanding Unemployment Fraud And The Consequences
Examples of Fraud:
- Deliberately reporting incorrect or zero wages.
- Saying you are able and available to work, or actively looking for work, when you’re not.
- Failing to report ALL gross earnings during the week in which they are earned while claiming UI benefits.
- Filing a claim under another person’s name, social security number, or employment information without their knowledge or consent.
- Filing a claim for someone who is incarcerated.
Potential Consequences of Committing Fraud:
- You will be required to repay any UI benefit payments you have received, along with interest and other mandatory penalties.
- You may NOT be able to collect additional UI benefits until the UI debt is repaid.
- Your state and federal income tax refunds may be taken to pay back your debt.
- The state may pursue prosecution and, in some cases, it could result in jail time.
Recommended Reading: Can You Apply For Unemployment While Waiting For Disability
Penalties For Committing Fraud
Depending on the circumstances, if you knowingly make false or misleading statements, you will likely be fined. The amount of the fine varies, but you may have to pay up to 150% of any overpayment you received, or three times your benefit rate for every false statement, whichever amount is lower. The value of the overpayment is the total of any benefits that you were actually paid plus a percentage of the value of any benefits that you could have been paid because of the fraud.
In addition, we may record a violation on your EI file. If this happens, you will need to work more hours to qualify for EI benefits in the future. We will calculate the number of hours based on the following chart. The higher the value of this figure, the more hours you may need to qualify for EI benefits.
| Violation type | |
|---|---|
| More than one violation in your file |
100% more hours Example: If you usually need 420 hours, you will now need 840 hours. |
*These increases apply for five years from the date we record the violation on your file or to your next two claims, whichever comes first.
It does not matter if you apply for regular, sickness, maternity, parental, compassionate care, or family caregiver for children or adults benefitsyou will need the increased number of hours to receive any of these benefits.
Read Also: How Do I Change My Address For Unemployment Online
Reporting Unemployment Identity Theft
Also Check: Wa State Unemployment Insurance
Read Also: What Day Of The Week Does Nc Unemployment Pay
Additional Resources From The Cdle
Click HERE to view a video “Protecting Yourself Against Identity Theft”
Click HERE to view a video “How to Protect Yourself from Data Breaches and Identity Theft”
CDLE website for Reporting Fraud / Information on Fraud:
With the rise in unemployment insurance claims associated with COVID-19, nationally there has been a rise in fraudulent claims and other instances of fraud or identity theft. If you receive a Reliacard debit card or other paperwork from CDLE and have not filed a claim, report it to us via the form below and follow the five steps we have outlined. Use this same form if you have received any paperwork to your mailing address that was sent to someone else other than those in your household.
Protect Yourself Against Fraud and Identity theft Never give out personally identifiable information over the phone. We will never contact you and ask for your social security number , bank account numbers, your PIN, account passwords, or any other personally identifiable information.
If You’re an Individual Facing Identity Theft
If you received unemployment paperwork but did not file a claim, or otherwise believe you are a victim of identity theft related to unemployment benefits.
How To Avoid Scams
Scammers attempt to get your personal identifying information for a number of criminal reasons, including applying for benefits in your name.
When a fraudulent claim is filed for disability benefits for example, scammers may have also stolen the credential information of medical providers, who are an important part of the eligibility verification process for benefit payments. To combat such fraud attempts, we will contact recent medical providers whove registered in our system to confirm their medical provider status.
For more information about protecting yourself from identity theft, review the California Attorney Generals Identity Theft Information Sheets and .
Note: The national credit reporting agencies Transunion, Experian, and Equifax are offering no-cost credit monitoring services through December 2023.
Read Also: How To Get New Unemployment Card
How To Report Fraud
If you receive documents from the EDD but did not file a claim for benefits, someone may have filed a claim under your name, address, or Social Security number. To report benefits fraud, visit Report Fraud in Ask EDD. You can also call the EDD Fraud Hotline at 1-800-229-6297.
Important: If youve received a Form 1099G but you did not file a claim, there is a different process for reporting fraud. Visit Form 1099G in Ask EDD or call 1-866-401-2849, Monday through Friday, from 8 a.m. to 5 p.m., except on state holidays.
Email Text Messages & Social Media
NYS DOL uses emails, text messages and social media to communicate with claimants throughout the application process and benefit period. Some fraudsters are posing as NYS DOL through fraudulent emails, text messages, and social media accounts to prey on New Yorkers who need assistance. Refer to the following tips about communication from NYS DOL.
NYS DOL uses email to provide updates, allow claimants to certify for backdated benefits, provide reemployment services, and more. To avoid becoming a victim of fraud, double-check the email address from all emails you receive. If an email appears fraudulent, it may be look out for misspellings, suspicious links and unusual messaging. If you are unsure if an email is from us, reach out to NYS DOL to confirm.
Find out more about DocuSign emails from NYS DOL.
Text Messages
NYS DOL uses text messages to provide updates and allow claimants to certify for backdated benefits.
Text messages from NYS DOL will only come via DocuSign or from the numbers 697365 or 22751.
Watch out for SMShing attempts where fraudsters use text messages to lure you into calling back a fraudulent phone number, visiting fraudulent websites, or downloading malicious content via phone or web.
Find out more about DocuSign text messages from NYS DOL.
Social MediaNYS DOL uses social media to provide updates and answer questions.
The only verified social media accounts associated with NYS DOL are the following:
- YouTube: youtube.com/nyslabor
You May Like: How To Apply For Unemployment In Texas
Why Should You Use Donotpay
When someone violates your privacy and financial security through unemployment fraud, the recovery process can sometimes be lengthy, overwhelming, and stressful. DoNotPay makes the process fast, easy, and successful. We donât just tell you which reports filing we file them on your behalf and make the best case for you. We will walk you through the process and support you each step of the way so that you can hopefully return to living your life normally as soon as possible.
DoNotPay can help with all types of identity theft issues, such as credit card fraud, social security fraud, or IRS tax fraud. We can help you notify the credit bureaus and even file reports on your behalf. Whatever issues you are facing as a result of identity theft, DoNotPay is here to support you.
Also Check:
How To Report Unemployment Fraud
This article was co-authored by Clinton M. Sandvick, JD, PhD. Clinton M. Sandvick worked as a civil litigator in California for over 7 years. He received his JD from the University of Wisconsin-Madison in 1998 and his PhD in American History from the University of Oregon in 2013. This article has been viewed 10,471 times.
Both employers and employees can commit fraud on the unemployment insurance fund. Employers commit fraud by not paying in their fair share. Employees commit fraud by taking out more than their fair share. Unemployment compensation is not funded by general taxpayer funds. It is funded by employers paying into a state fund used to pay former employees who meet certain criteria. If you suspect either a person or business of committing unemployment fraud, here are some things you can do to report it.
Recommended Reading: What Benefits Can I Claim When Pregnant And Unemployed
What To Expect After You Have Reported Fraud
We will help you through this difficult time.
You will receive:
You do not owe us any money as a result of the fraudulent claim You might have received a letter from us stating that you must repay benefits that we paid on the fraudulent claim in your name. You can ignore that letter! Our computer system automatically generates the letter when we deny an unemployment application. Were sorry for the anxiety it may have caused.
How Employers Can Report Id Fraud On An Unemployment Claim
Employers may receive a claim notice from TWC requesting information on a claim. If you receive a notice for an employee who is still working, or for a person who never worked for you, please respond to the notice immediately and indicate the claim was fraudulently filed by an imposter. See Responding to a Notice of Application for instructions on responding to a claim notice.
If your employee receives a notice for an unemployment claim they did not file, advise your employee to report the ID fraud claim using TWCs online fraud portal.
Recommended Reading: How Long Do You Have To File For Unemployment
How To Report Fraud In A Twc Program
The Texas Workforce Commission is authorized by the Texas Labor Code to investigate allegations of fraud, waste, and program abuse involving TWC programs. See TWC Programs, Definitions and Examples of Reportable Violations for examples.
To report suspected fraud, waste, or abuse involving TWC programs, that is not related to identity theft, use one of the following methods:
- TWCs secure online fraud portal Submit documents or upload a brief summary document describing the alleged program fraud.
- [email protected] Use only if unable to submit using the online portal. Submit a brief summary describing the alleged fraud. Do not use to report identity theft. See Warning, below.
- Fraud Hotline at 800-252-3642 Use only to submit an anonymous report. Available 24 hours a day, seven days a week. Information must be specific as possible. Do not use to report identity theft.
You may also report suspected fraud, waste and abuse involving state resources directly to the State Auditor’s Office . You may contact the SAO through the SAO Hotline website or by calling the SAO Hotline at 800-TX-AUDIT 800-892-8348.
Unemployment Identity Fraud And Your Irs Tax Return
When you file your federal income tax return, you must report income you received, but you should not report income that you did not receive. When you file your income taxes, only include income you actually received. Do not wait to receive a corrected 1099-G to file your taxes. Once TWC has that confirmed an unemployment claim was fraudulently filed, TWC will send a corrected report directly to the IRS. Refer to the Identity Theft and Unemployment Benefits page on IRS.gov for updates and additional tax filing information.
You May Like: If I Filed For Unemployment How Do I File Taxes
What To Do If You Receive An Overpayment Notice
If you receive an overpayment notice for an unemployment claim that you did not file, you should report the ID fraud claim on TWCs online fraud portal.
Once TWC confirms that a claim was fraudulently filed by an imposter, the person named on the claim is not responsible for any overpayment and the employers tax rate or reimbursement is not affected. Once unemployment ID fraud is confirmed, any future overpayment statements will be suspended. You may continue to receive overpayment notices while the investigation is ongoing.
Victims: Reporting Unemployment Insurance Fraud
IDES is aware of phishing schemes targeting Illinoisans. Please note that individuals will never receive a text message from IDES seeking personally identifiable information, like your social security or drivers license numbers. For more info on phishing schemes please visit the FTC website.
Unemployment Insurance Identity Theft Fraud
Identity thieves and hackers have long known how to use stolen identities to commit fraud for example, to open a new credit card or file a false tax return and criminals using stolen identities to defraud public assistance programs is not new. In fact, such schemes are so pervasive that federal rules require Illinois to have staff dedicated to preventing and stopping fraudulent activity in the Unemployment Insurance system.
IDES partners with local and federal law enforcement agents, the Department of Labors Office of Inspector General, Attorney General, States Attorney and US Attorneys Offices to help us in our fight against fraud.
Please take the time to review the information below, including how to spot UI identity theft, how to report identity theft to IDES, and what happens after you contact the agency.
How can I spot unemployment insurance identity theft?
- Report the fraudulent claim here.
- DO NOT activate the debit card that was mailed to you.
- DO NOT contact KeyBank.
- Request your free credit reports via www.annualcreditreport.com and review them for other fraudulent activities.
Don’t Miss: If Quit Can Get Unemployment
