Examples Of Unemployment Benefits Fraud
Identity Theft/Imposter Fraud
Fraudsters use another persons personal identifying information to apply for and receive unemployment benefits. PII can be stolen through outside data breaches, email phishing schemes, impersonation scams and other methods.
Fraud Overpayments
This kind of fraud occurs when a claimant makes false statements or withholds information to receive unemployment benefits for example, when a claimant continues to receive benefits after returning to work, and does not report their earnings.
According to the FBI, be on the lookout for the following suspicious activities:
- Receiving communications regarding unemployment insurance forms when you have not applied for unemployment benefits.
- Unauthorized transactions on your bank or credit card statements related to unemployment benefits.
- Any fees involved in filing or qualifying for unemployment insurance.
- Unsolicited inquiries related to unemployment benefits.
- Fictitious websites and social media pages mimicking those of government agencies.
Identifying Ssn Theft Signs
It’s often hard to tell if someone stole your SSN until they start using this information to commit identity theft. However, you could identify it early on if you scan the news for data breaches that involved your information, notice a lost SSN card or important mail, or realize you gave your SSN to a likely scammer. Once identity thieves start using a stolen SSN, you might experience these incidents:
- Sudden rises or drops in your credit score
- Letters from the Social Security Administration about changes to your account
- Phone, email and mail communications regarding a bank, credit or insurance accounts you didn’t open
- Seeing suspicious activities such as incorrect balances, new accounts or delinquencies on your credit report
- Missing government benefits payments
- Notices about tax returns you didn’t file
- Medical bills you don’t recognize
- Problems getting employment, health insurance or financing
- Unknown charges or withdrawals on bank and credit card statements
- Accusations for crimes you didn’t commit
- Violations on your driving record
- Communications from employers you don’t recognize
How Employers Can Report Id Theft 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 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 theft claim using TWCs online fraud portal.
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Understanding Ssn And Identity Theft
If you’ve had your Social Security number stolen, this could have resulted from someone taking your physical Social Security card that you might have had in a lost wallet or purse, or they could have taken mail that showed the number. However, there are plenty of other ways a thief could get this information without even leaving their house. They could call you impersonating an organization with which you do business and get your SSN, or they could have used the internet to obtain your SSN through websites selling personal information, phishing schemes or large data breaches.
SSN theft and identity theft have a very close connection since the former often leads to the latter. Identity theft happens whenever the person who stole your SSN or another piece of personal information uses it for fraudulent acts that ran range from accessing and opening accounts to impersonating you during crimes. When this happens, you can face problems ranging from losing money and damaging your credit to getting caught up in legal battles. Having your Social Security number stolen doesn’t automatically mean the person used it for anything, but it’s a common warning sign that an identity thief will try.
Read More: Identity Theft: Most Common Types & Warning Signs
Additional Suggestions For Victims Of Id Theft
Victims of identity theft are advised to take the following actions:
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Report Identity Theft To Other Organizations
You can also report the theft to other organizations, such as:
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Credit Reporting Agencies – Contact one of the three major credit reporting agencies to place a fraud alert or freeze on your credit report. Also get copies of your credit reports, to be sure that no one has already tried to get unauthorized credit accounts with your personal information. Confirm that the credit reporting agency will alert the other two credit reporting agencies.
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National Long-Term Care Ombudsman Resource Center – Report cases of identity theft due to a stay in a nursing home or long-term care facility.
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Financial Institutions – Contact the fraud department at your bank, credit card issuers and any other places where you have accounts.
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Retailers and Other Companies – Report the crime to companies where the identity thief opened credit accounts or even applied for jobs.
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State Attorney General Offices – Check with your state’s attorney general office for tips, checklists, or an advocate to help you recover from identity theft.
You may need to get new personal records or identification cards if you’re the victim of ID theft. Learn how to replace your vital identification documents after identity theft.
How To Use Idme
TWC uses ID.me to verify the identity of an individual who filed a claim for unemployment benefits. If you did not file the unemployment claim, you must not use ID.me.
Most claimants can verify their identity using the ID.me self-service webpage. You will need to submit photos of your:
You might not be able to have your identity verified using the self-service webpage if:
- The photos of your government-issued ID or your personal photo are blurry or shadowed
- If you have credit issues, such as no credit or frozen credit or your credit information is incorrect
- Or if the phone number you submit is not associated with your name.
If you cannot use the self-service option, you may be able to verify your identity during a video conference call with ID.me. To verify your identity using a video call, you will need:
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How To Protect Your Identity Going Forward
Now that you have made your initial report and have a new card on the way, what do you need to do to protect yourself going forward? First, you should consider signing up for a credit monitoring service so that you can keep a close eye on your credit. This type of service will alert you immediately if anyone attempts to use your Social Security number to obtain a new line of credit like a loan or credit card.
You might even consider contacting the major credit reporting agencies like Experian, Equifax, and Transunion to place a lock on your Social Security number. This would prevent anyone from using your SSN to obtain credit without going through rigorous identification verification. Finally, make sure to keep a constant watch on your credit file for any suspicious activity. You can obtain a free copy of your report at annualcreditreport.com, and staying vigilant will help protect you from ID theft going forward.
Finally, you should keep your Social Security card safe and secure. There is really no reason to carry your card with you all the time. It is best stored in a safe location and only pulled out when absolutely necessary. This can help prevent both theft and accidental loss of your card.
Report Fraud Or Misconduct
Submit a report if you know someone is claiming unemployment benefits and shouldnt be, or if an ESD employee is engaging is misconduct. Youll be asked to report the persons name and any other information that will help us identify them and the reason you believe theyre involved in committing fraud or misconduct.
If you reported fraud and need information about how to file your 2021 taxes or how to get a corrected 1099-G form, visit our tax information for fraud victims web page.
Information you will need to provide when reporting benefit fraud using our secure form:
Steps you can take if you believe you are a victim of fraud:
- Go to the Federal Trade Commission identity theft website: identitytheft.gov for great resources on reporting.
- Request your free credit reports via annualcreditreport.com and review them for other fraudulent activities.
- Go to atg.wa.gov/recovering-identity-theft-or-fraudfor more tips from the Washington State Attorney General.
- Learn more about identifying scams on the Identifying unemployment scams web page.
- Find more info about how to protect yourself from scams on the state’s coronavirus website.
You can also report fraud by phone to the Office of Special Investigations
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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.
Social Security Combats Fraud
Social Security has zero tolerance for fraud. We diligently work at the national, regional, and local levels to combat fraud that undermines our mission to serve the American public.
To meet this challenge, we work closely with the Office of the Inspector General which investigates allegations of fraud and seeks to bring offenders to justice. The OIG refers cases to U.S. attorneys within the Department of Justice, and other state and local prosecuting authorities, for prosecution as a federal crimes.
Visit our OIGs Investigations page to view a list of recent fraud investigations.
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How We Use Your Social Security Number
We use your Social Security Number to verify your income and work history by checking for wages reported by your recent employers. If there is a mismatch between what you told us when you applied for benefits and the wages reported by employers, that difference could be due to a simple mistake in what you told us, what we entered into our system, or what your employer reported. It is also possible that the difference is due to someone else using your SSN, which is sometimes called “identity theft.”
It is important to correct wage history errors because if you receive benefits based on incorrect wages or wages that are not yours, you must repay any overpayment.
How Do I Report My Social Security Card Stolen
You should call your local law enforcement to report your card stolen. They can take a police report and begin an investigation into finding the thief. You should also notify the Social Security Administration that your card has been stolen as well as the IRS. Notifying these agencies, in addition to the credit bureaus, will flag your SSN and make it more difficult for the thief to perform fraudulent activity using your SSN.
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Jobless Claims Siphoned Away Over $163 Billion In 2021
Has someone claimed unemployment benefits in your name? Youâre not alone.
The U.S. government created the Unemployment Insurance program to offer temporary financial support to people seeking jobs. However, since 2020, identity thieves have exploited the system to pilfer over $163 billion in UI scams.
With large-scale job losses at its heels, the pandemic forced the government to provide additional support. Fraudsters werenât far behind. With your Personal Identifiable Information , identity thieves can apply for UI benefits theyâre not entitled to â like the 28-year-old from Virginia who collected almost $500,000in UI funds after filing fraudulent jobless claims for at least 37 people.
This article will explain how unemployment fraud occurs and what to do if someone claims benefits in your name.
What To Do If Your Social Security Number Is Stolen
A Social Security number is probably the single most important piece of government-issued identification that a U.S. resident can have. It’s definitely the most valuable piece of ID that identity thieves can get their hands on, especially when combined with the bearer’s name and address. Even by itself, a valid SSN can be sold to undocumented workers or to people trying to hide their true identities.
A stolen SSN lets the thief, or the person he or she sells it to, do almost everything a legitimate SSN holder can do and more. By assuming a real person’s name and SSN, a thief can steal property and money from that person. If an identity-theft victim’s name and SSN are used by criminals, it’s the victim whom the police will be looking for.
“You can close a credit card if it is compromised,” said Adam Dolby, director of channel sales at Minneapolis-based Entrust Datacard. “But the problem is, you can’t close your SSN.”
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If you discover your Social Security number has been stolen or otherwise misused by another person, there are several steps you’ll need to take right away.
Renew the fraud alert every year until you’re satisfied the matter has been settled it could take many years. Contact the Social Security Administration only to get a replacement card or replacement number .
Report the identity theft to the Federal Trade Commission at . You can also call 1-877-IDTHEFT.
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Prevent Your Social Security Number From Being Stolen
Recovering from a stolen Social Security number is no easy task. In fact, you can never really be entirely sure that your SSN is safe afterwards. For this reason, prevention is by far your best tool. Stay safe, stay cautious, and you can keep your identity secure. Follow the tips below to lock down your data.
Individuals: 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.
Spotting Unemployment Insurance Identity Theft
Your personal information may have been used to file a fraudulent unemployment insurance claim if:
Next Steps
If you suspect a claim has been submitted using your information, and you have not applied for unemployment insurance benefits in Illinois, take steps as follows:
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Identity Theft 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 confirmed an individuals identity has been stolen, 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.