How To Report Someone Scamming Unemployment

Report Scams To The Federal Government

Ohio unemployment fraud: 3 steps you need to do if someone has stolen your information

You can report scams to the federal government. Your report may keep others from experiencing a scam. Government agencies use reports of scams to track scam patterns. They may even take legal action against a company or industry based on the reports. However, agencies dont follow up after you report, and can’t recover lost money.

Do not use the contact information included in scam messages. Use verified contact information in USA.gov’s federal agency directory to report other government imposters.

Report Disaster and Emergency Scams

Report coronavirus scams and other scams about disasters and emergencies.

Use the National Center for Disaster Fraud’s web complaint form or call .

Find more information on identifying and reporting coronavirus scams.

Report Most Common Scams

The Federal Trade Commission is the main agency that collects scam reports. Report the scam to the FTC online, or by phone at . The FTC accepts complaints about most scams, including these popular ones:

Demands for you to send money
Student loan or scholarship scams
Prize, grants, and sweepstakes offers

The FTC also collects reports of identity theft. Report identity theft online at IdentityTheft.gov or by phone at .

Report Online and International Scams

Report Social Security or IRS Imposter Scams

Scammers often pretend to work for the Social Security Administration or Internal Revenue Service . Common signs include:

Signs That You May Be A Victim Of Unemployment Identity Theft

Most victims of unemployment identity theft are unaware that claims have been filed and/or that benefits have been collected using their identities. Many people only find out unemployment identity theft occurred when they receive something in the mail, such as a payment or state issued 1099-G tax form thats incorrect or for benefits not received.

Sample form from the IRS.gov website: IRS form Certain Government Payments 1099-G

False Accusations / Mistaken Identity

Demonstrating your innocence is the ultimate defense. There are numerous reasons why innocent people get accused of this crime. Perhaps someone in your office filed for a fraudulent claim and, when questioned, tried to escape his own liability by pointing the finger at you. Perhaps you were the victim of identity theft and as a result you were also the victim of mistaken identity, since you are not the culprit who submitted the false claim.

A good defense attorney and defense investigator can often uncover the critical facts to exonerate a falsely accused suspect.

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How To Protect Your Credit Report

If youve been the victim of identity theft, you should take action to safeguard your data identity. Free protections and resources are explained in the Fraud Victim Bill of Rights. Make sure to read your credit reports thoroughly and check for accounts you dont recognize.

Place a fraud alert on your credit reportFraud alerts tell lenders to take extra steps to verify your identity before extending credit in your name. You can add an initial fraud alert to your credit report immediately. An initial fraud alert will stay on your report for one year. If you provide a letter from your state unemployment office or law enforcement report confirming you were a victim of unemployment fraud, you can request an extended fraud alert, which remains on your file for 7 years. If you place a fraud alert with TransUnion, well contact Equifax and Experian so theyll add one on your reports with them as well.

Consider freezing your report as well A credit freeze prevents lenders from accessing your report, which stops new accounts from being opened. Freezing your credit is free, doesnt impact your score and can be lifted easily when needed. If you want to freeze your credit, youll need to contact each credit reporting agency individually to place a freeze and to lift or remove a freeze.

Local Retiree Questions What To Do With 1099

[California] scam text received! : Unemployment

âNow I have a 1099 that says itâs for $4,880,â said Karol Settergren, a retired high school counselor.

Taking a close look at the 1099, she said, it shows that withholdings of $488 for federal income taxes and $270.40 for the state.

âIt has my Social Security number on here,â she said.

âNow, Iâm just concerned what happens when I go to file my taxes.â

Settergren, 73, did not file for unemployment benefits in 2020.

She remembers that she did get some paperwork in the summer that said she was denied her claim for unemployment benefits because she didnât provide enough identification. She did not keep that letter.

Again, though, she did not expect a problem since she received information saying the claim was reportedly denied.

âItâs just another thing to deal with,â she said. âIt seems like everything is going wrong in this year of COVID-19.â

Last year, a large-scale imposter scheme hit state unemployment systems across the country. Many times, the crooks filed claims for people who didnât lose jobs, such as school teachers, retirees and even some small business owners.

On Monday, California officials confirmed that the state paid out more than $11 billion in unemployment claims relating to fraud during the pandemic, according to The Hill.

An independent report in November indicated that Michigan might have at one point through late May paid out up to $1.5 billion to such fraud.

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Consequences Of Committing Fraud

Collecting unemployment under false pretenses is a crime. The Georgia Department of Labor actively pursues collections of all overpayments and is committed to maintaining the integrity of the UI program. Under GeorgiaÃ¢s Employment Security Law, individuals who knowingly make false statements, misrepresent or omit material facts, or knowingly accept benefits to which they are not entitled lose the right to future unemployment benefits for up to 15 months and are subject to criminal and civil legal actions and fines.

Individuals who commit fraud are liable for the total amount of improperly paid benefits plus penalties and interest. A penalty of 15 percent will be added to, and become part of, the overpayment amount. Interest of one percent per month shall accrue until the overpayment is repaid. Penalty amounts will not be waived.

The GDOL is also empowered to intercept state and federal income tax refunds to recover UI overpayments.

Victim Of An Unemployment Scam Here’s What To Do

Most of the time, an attacker has already filed a claim by the time you find out about unemployment identity theft.

Whether you discover this when filing your tax return or after receiving form 1099-G, the first thing you need to do is report the fraud to the state workforce agencies in the state where it took place.

Next, you’ll need to notify your employer so that they’re aware of the situation.

Itâs also useful to file a report with your local police department. This will create a record of the crime, which you can use as evidence that the fraud took place when communicating with the IRS.

At this stage, itâs time to protect yourself from further fraud in case the scammer has used your information elsewhere to steal your identity.

Follow the steps of the fraud victim’s checklist. Then, set up a credit freeze to stop scammers from opening bank accounts or taking out credit in your name.

For added protection, you can check your credit report and then set up a fraud alert and identity theft protection to alert you of any fraudulent activity happening in your name.

Identity theft protection services can also protect you if a scammer uses your identity to commit financial fraud. With Aura, youâre covered with up to $1 million in eligible losses due to identity theft.

Finally, if you believe youâve been the victim of identity theft, file a claim on identitytheft.gov.

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Can Scammers File For Benefits In Your Name

Last year alone, almost 400,000 Americans had their identities stolen and used to apply for fraudulent government benefits.

Times of crisis are a breeding ground for new scams. Since the beginning of the pandemic, the US government has lost more than $36 billion due to fraudulent unemployment benefits. But the government isn’t the only one who can get scammed by unemployment fraud.

So what happens if someone applies for unemployment benefits in your name?

In this guide, weâll teach you the warning signs of unemployment fraud and how you can protect yourself from becoming a victim.

Notify & Help The Employee

Unemployment benefit scams: How to protect yourself consumerfinance.gov

Notify the affected employee if theyre unaware of the fraudulent claims made in their name. Then help them file the necessary reports and protect their information from future breaches.

Report identity theft

Protect their Federal tax returns
Visit IdentityTheft.gov for more information and tips

4. Consider the possibility of an organization-wide incident

If multiple employees at your organization fall victim to unemployment fraud, you may have experienced a data breach. For instance, someone may have gained unauthorized access to your system and your employees PII.

If you suspect a large-scale incident like this, notify your insurance carrier and legal advisors as soon as possible.

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Employers Role In Combating Ui Fraud

In order to begin paying UI benefits, NYS DOL must confirm eligibility with a claimants employer. As such, employers in New York State may be the first to know if unemployment fraud has been committed.

Employers should look out for and report any of the following, as they may be signs of UI fraud and/or identity theft:

NYS DOL inquiring about a current employee who is not unemployed
NYS DOL inquiring about a former employee who has not become unemployed within the past five annual quarters

Missing, incorrect, or suspicious information in a claim

Report suspected UI fraud to NYS DOLs Office of Special Investigations.

Where Do I Mail My Unemployment Application To

Mail your request to Unemployment Insurance Division, NYS Department of Labor, P.O. Box 1195, Albany, NY 12201. Be sure to write your Social Security number on your request. Next Section

We have compiled the address, phone number and fax number of every NYS unemployment office. You may contact these offices to get answers to questions about unemployment eligibility, filing an New York unemployment claim for eligibility, and checking on the status of a previously completed unemployment claim.

These offices will aid you in giving up to date information relating to unemployment benefits eligibility, assistance in filing a claim, rates etc. Please note that this website is owned and operated independently and is just a portal to arm you with more knowledge about unemployment.

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Irs Information For Employers

Employers are often the first line of defense against unemployment fraud. Employers should:

Respond quickly to state notices that its employees have filed for unemployment claims, especially if the names on the notices are not employees
Be alert to misuse of the IRS-issued Employer Identification Number that fraudsters may use to file jobless claims

File a Form 14039-BPDF, Business Identity Theft Affidavit, if the companys EIN is being used to generate fraudulent unemployment benefit claims.
Write to the IRS to close out the business tax account if the company is going out of business this will help curtail the misuse of dormant EINs.

Sign Up For Identity Theft Protection

If scammers have enough of your personal information to pull off an unemployment fraud, your bank account, email or identity is also at high risk of being stolen. For real-time and more comprehensive protection of your finances and assets, you may consider signing up with an identity theft protection service.

Aurais a top-notch digital solution that secures you against different digital hacks and covers every safety measure from monitoring, alerting to recovery:

Account & Credit monitoring

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Take The Following Steps If You Believe You Have Been A Victim Of Identity Theft:

File a police report.
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.
The processing of your tax return should not be delayed while your report of unemployment identity theft is under investigation.

If you have not filed your taxes yet, do not report the incorrect 1099-G income on your tax return.
If you have already filed your taxes, do not file an amended return. The IRS will issue additional guidance regarding your next steps. Refer to the Identity Theft and Unemployment Benefits page on IRS.gov for updates and additional tax filing information.

Check your credit report for suspicious activity or unauthorized lines of credit opened. Per federal regulations, you can request one free credit report per year from each of the three credit bureaus through AnnualCreditReport.com or call 1- you will need to provide your name, address, social security number, and date of birth to verify your identity. For information and steps to further protect your credit, visit the Credit Report page on the Federal Trade Commission consumer site.

You May Be A Victim Of Unemployment Identity Theft If You Received:

Mail from a government agency about an unemployment claim or payment and you did not recently file for unemployment benefits. This includes unexpected payments or debit cards and could be from any state.
A 1099-G tax form reflecting unemployment benefits you weren’t expecting. Box 1 on this form may show unemployment benefits you did not receive or an amount that exceeds your records for the unemployment benefits you did receive. The form itself may be from a state in which you do not live or did not file for benefits.
While you are still employed, a notice from your employer indicating that your employer received a request for information about an unemployment claim in your name.

Protecting The Ei Program

We are all responsible for helping to detect and deter EI fraud.

At Service Canada, we are determined to protect the EI program. Our powerful computer tracking and linked data systems now mean it is almost impossible for fraudulent activity to remain undetected for long.

You also have an important role to play in helping to protect the EI program. If you are aware that someone has committed fraud, please let us know.

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How To Check If Someone Filed Unemployment In My Name

How to Report Fraud at ReportFraud.ftc.gov | Federal Trade Commission

If you tried to apply for unemployment insurance but were denied and told that youre receiving it, you may fall victim to unemployment fraud. This is a common type of identity theft growing rapidly during the COVID-19 epedemic when jobless claims see a drastic spike. It can happen to anyone and is rather difficult to detect. By recognizing some warning signs of such frauds and taking preventative steps, you could better protect yourself.

Is Your Information on the Dark Web?Run a Free Identity Threat Scan

The Bottom Line: Unemployment Scams Are Rising

But while identity theft can happen to anyone, it doesn’t have to happen to you.

Prevent identity theft by being proactive and aware of unemployment scams trying to capture your personal information. A bit of due diligence will reduce the chance that someone will make claims under your name.

Ready for ironclad identity theft protection? Try Aura free for 14 days.

Report Fraud In Writing Or Online

Send an anonymous letter by mail, fax or online if you would rather not talk to an investigator even anonymously. Some states have online reporting systems so go online to find out the options for filing fraud reports. The state of Washington, for example, accepts anonymous reports by mail, fax and online. In most cases, youâll need to file the report in the state where the family members lives, or the state where they committed the fraud if different.

Whats The Punishment For Unemployment Scams

Anyone who deliberately provides false information to collect unemployment benefits is committing unemployment fraud. This means that unemployment scammers are open to serious criminal and civil liabilities.

While the penalties vary by state, in general, perpetrators will be forced to pay back the stolen funds plus interest . They might even be given a prison sentence.

For example, under California law, if a fraudster claimed over $950 in benefits fraudulently, they would be charged with a felony. If the amount was less than $950, they would be charged with a misdemeanor and liable to spend up to six months in jail and to pay a fine of up to $1,000.

Ui Fraud & Identity Theft

KDOL warns of phishing scam targeting people via text message

The Department of Labor works very hard to protect the integrity of our agency and programs. To combat and stop unemployment insurance fraud and identity theft, we work actively alongside local, state and federal law enforcement agencies, government agencies, claimants, and employers in New York State and around the country.

Fraudsters use real New Yorkers identities likely stolen during previous data breaches involving institutions like banks, insurance companies and major employers to file fraudulent UI claims and illegally collect benefits in the name of individuals who are not unemployed.

Unemployment insurance fraud rings often target New Yorkers who are employed and not collecting UI benefits because those individuals are less likely to have an active claim. The presence of an active claim would prevent the criminals from filing a fraudulent claim for that same person. People who work in health care, education, government and non-profits have been particularly impacted by UI fraud and should remain especially vigilant.

We encourage you to help us by reporting allegations of fraud. If you receive official communication from NYS DOL regarding UI benefits that you did not apply for, you may be a victim of UI benefits fraud and identity theft. Official communication includes, but is not limited to, emails, text messages, letters, debit cards, and tax forms received in the mail. You should immediately report suspected UI fraud to NYS DOL.

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