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Widespread Fraud Scheme Impacting All State Unemployment Programs

Picture of Heather Palermo Heather Palermo · November 02, 2020

payroll + hr + compliance small business accounting business strategy

Widespread Fraud Scheme Impacting All State Unemployment Programs

WARNING

Unemployment fraud is impacting Pandemic Unemployment Assistance (PUA) programs across the nation.

Claimant fraud can include knowingly submitting false information; continuing to collect benefits when knowing oneself to be ineligible; not being able and available to work while certifying for benefits under state law; or intentionally not reporting wages or income while collecting full benefits. Additionally, identity theft may result in unemployment insurance fraud that is not the fault of the employer or the identity theft victim.

Three signs that you and/or your employee may be victim to unemployment fraud:

Your employee did not apply for unemployment, but receives an unemployment debit card.
You claimed pandemic unemployment assistance and receive a notification from PUA similar to this spoofed US DOL email.
You receive an unemployment benefit letter for a current employee, addressed to your business.

It is imperative that you act quickly to report the suspected fraud to your state unemployment department as well as the Federal Trade Commission:

ILLINOIS (IDES) Phone 800.814.0513 or contact them using their online form which can be found here.

WISCONSIN (DWD) Phone 800.909.9472 or contact them using their online form which can be found here.

FEDERAL TRADE COMMISSION (FTC) Visit FTC.GOV for helpful tips and information for protecting yourself against identity theft and what to do when your information is lost or exposed.