What Can I Do if I Suspect an Unemployment Claim is Fraudulent?

The risk of fraudulent unemployment claims hasn’t disappeared with the end of the COVID-era. So, what can you do as an employer when you suspect a fraudulent UC claim? Here are some first steps.

A report from the U.S. Government Accountability Office suggests that criminals potentially stole more than $60 billion of a projected $191 billion improperly paid benefits from the nation’s unemployment insurance program during the COVID-19 pandemic. Attempts to use fraudulent tactics didn’t stop after the pandemic. In 2023, nearly 10% of all the reports received by the FTC (74,986) were identified as employment or tax-related fraud reports.  Even after pandemic-related restrictions have eased and the additional funds available in the program have stopped being paid out, unemployment claims fraud remains something to keep an eye on. Employers often are the first to notice a fraudulent claim, often making HR the first line of defense against unemployment fraud.

What steps can you take if you identify a UC claim that you suspect is fraudulent?


For more on steps you can take to better protect your client, your company, and employees against additional identity fraud, download our checklist 5 Steps to Help Report Unemployment Claims Fraud.

The information provided is intended as general guidance and is not intended to convey any tax, benefits, or legal advice. For information pertaining to your company and its specific facts and needs, please consult your own tax advisor or legal counsel.  Equifax Workforce Solutions provides services that can help employers reduce their compliance risks. Details on our provision of these services and related support will be contained in your services agreement. Links to sources may be to third party sites. We have no control over and assume no responsibility for the content, privacy policies or practices of any third party sites or services.

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