Unemployment Claims—Watch out for Fraud!

Since the beginning of the COVID-19 pandemic, fraudulent unemployment claims have been increasing. In July, the FBI alerted employers about the rise in fraudulent unemployment claims. Stolen identity information is being used for unemployment benefits using the names and personal information of employees who have not lost their jobs. 
 
It is important for employers to monitor and confirm the legitimacy of claims.  Employers can take the following actions to help prevent fraudulent unemployment claims from being paid:
 

• Be alert – Ask employees to report fraudulent benefit claims as soon as they learn of them.  Employees should pay careful attention to information they receive related to unemployment benefits, especially if they have not applied for benefits.
• Notify employees quickly – If an unemployment application is received on a current employee, contact the employee to confirm if they filed a claim for unemployment benefits.
• Report the fraud – Both the employer and the employee should work together to quickly notify both the state unemployment benefits agency and the local police department of the fraud. 
• Address identity theft – A fraudulent unemployment claim is a sign that an employee’s sensitive personal information is available to criminals.  Employees should file a report with the Federal Trade Commission (FTC) and notify major credit bureaus, as well as review their credit report and request fraud alerts be established on their accounts. 
• Review IT security – Employers should consult with their IT department to confirm that databases containing employee information have not been compromised.

 
Employers have the responsibility to assist their employees whose personal information has been stolen. The Department of Labor provides information on how to report unemployment fraud in each state. The site is;  U.S. Department of Labor Offers Fraud Prevention Resources To Enhance Integrity of Unemployment Insurance Programs | U.S. Department of Labor (dol.gov)