Why Unemployment Claims Fraud May Still Be an Issue

Fraudulent unemployment claims still remain well above pre-pandemic levels. Learn more about why this may be and what you can do to help you and your employees fight future fraud.

In some cases, states and employers have gotten better about identifying fraudulent claims following the surge during the pandemic. We've seen a downturn in the amount of fraud at the macro level, but, unfortunately, it appears that we're clearly not out of the woods, yet. In 2022, the volume of identified fraudulent claims still remained at levels more than 3x what they were in 2019.¹ We are just now seeing another surge in fraudulent claims in some states, such as Ohio and Massachusetts, and other events percolating in the business world could signal risk for potential upticks in fraudulent unemployment claims in other states at any time.

Certainly, with stories of layoffs continuing to break in 2023 from retail giants to tech firms, the volume of unemployment claims have increased and provided greater opportunity for fraudsters to strike. But, what other events could signal additional risk, and what can you do to be better prepared for a potential increase in fraudulent claims activity?

Watch our video to learn more about the UI (Unemployment Insurance) modernization effort and why it may also lead to greater risk of fraudulent claims activity.         


Learn more about how you can help better control your unemployment costs

You don’t have to go it alone. Check out how Unemployment Claims Fraud Watch from Equifax can help you reduce the time and burden of dealing with fraudulent claims for you and your employees.

  1. Federal Trade Commission, Consumer Sentinel Network, Mar 2023.
    *All unemployment claims statistics referred to in the linked video are internal Equifax statistics from 2020 to 2022.

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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