Fraudulent Unemployment Claims Are on the Rise

Written by Erin Woulfe | Sep 14, 2017 2:58:31 PM

Betsy, the Benefit Coordinator at a small school district, was opening her mail and came across a (Monetary Determination) letter from the unemployment office. The letter discussed the eligibility of unemployment benefits for Ms. Smith, an active teacher within their district. “That’s odd,” Betsy thought, “why would she be filing for unemployment?” Upon meeting with Ms. Smith, it was discovered that someone had used the teacher’s personal information to file a fraudulent unemployment claim.

Fraudulent unemployment claims are becoming a nationwide issue for all employers, including schools, cities, and counties. You can protect your organization and your employees by reporting any suspicious claims.

Reporting Suspicious/Fraudulent Claims

When an individual files for unemployment benefits, the former employer receives a Monetary Determination form in the mail, stating the individual’s eligibility for unemployment benefits. When you receive this form, try to review the information promptly. You only have 10 days to protest/respond if you believe the form contains inaccurate information or it refers to a current employee. Failure to respond may allow criminals to receive fraudulent payment of benefits, which may be impossible to recover.

If the Monetary Determination form lists a current employee, you may need to reach out to them and have a conversation. The employee may need to take additional steps to protect themselves against identity theft.

Each state has a website to report unemployment fraud. An online form is usually provided or some states provide a toll-free number and/or fax.