Unemployment Insurance (UI) fraud is intentionally making false statements, providing false information, or withholding information for the purpose of obtaining or increasing UI benefits. This type of fraud tends to be intentional, such as:
- 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.
The most common and most widespread type of fraud today is identity theft - or imposter - fraud. If you receive a claim for someone who is still employed and they did not file for unemployment, or a claim for someone who has never been employed by your company, this could be a sign of identity theft fraud. This type of fraud occurs when a fraudster files an unemployment claim and/or receives UI benefits using another person's identity (e.g., name, social security number).
The state workforce agencies conduct routine audits to identify these types of fraudulent activities and will decide if the act was intentional or a simple misunderstanding. If you are made aware of these types of activities, it is important to report them to protect your account and the Trust Fund balances.