While the efforts of state agencies and employers, along with the decline of active unemployment claims, has helped decrease unemployment fraud since its peak during the 2020 pandemic, as long as bad actors have data, they will continue to find ways to file fraudulent claims.
The Arizona Department of Economic Security (DES) has not had a breach of information stored by the Arizona DES; however, criminals are obtaining individuals’ personal information using phishing scams, previous corporate data breaches, and other tactics, and then using this stolen information to file for Unemployment Insurance (UI) benefits.
The Arizona DES issued a Fraud Toolkit with information on what to do if you or your employees have been a victim of identity theft fraud. This includes information on what to do if you receive:
- A Notice to Employer (UB-110 Form) for an employee who is still working or one who has never worked for you.
- A current employee receives a Wage Statement, Certificate of Understanding, or Electronic
Payment Card for benefits they did not apply for. - A current employee receives a 1099 for UI or PUA benefits they did not receive.
This toolkit also outlines the steps that AZ DES is taking to prevent fraud and protect UI program integrity.
To review the Arizona Fraud Toolkit, click here: https://des.az.gov/sites/default/files/media/UI-Fraud-Toolkit-for-Employers.pdf?time=1614287761430
Additional information can also be found on the DES website here.