These claims represent about 1,700 individuals filing an initial claim. AUGUSTA - For the week ending August 1, the Maine Department of Labor recorded about 1,600 initial claims filed for state unemployment insurance, and 470 initial claims filed for federal Pandemic Unemployment Assistance (PUA). Inspector General’s office is investigating a possible multi-state unemployment insurance (UI) benefit fraud scheme, which includes FL, KS, MA, NM, NV, NY, and TX. Are you an Equifax client and have additional questions? COVID-19 Highlights Needs for States to Modernize Unemployment Systems. As unemployment soars, imposter scammers target benefits claims. Alert them to what you noticed and ask if they have any idea what’s going on. Oklahoma has seen a steep rise. SHARES. Indeed, the U.S. Supreme Court recently held that state identify theft laws. Use our secure fraud reporting form to alert us to an imposter claiming benefits under your name. What is identity theft? Furthermore, the employee may not have intentionally provided incorrect information. Register for a demo to learn how Equifax can help your organization. Goldman soon realized he was a victim of unemployment fraud, in which an impostor filed a claim to attempt to receive benefits using his personal information. If you receive this letter (Form UIA 1575C) and you have not applied for unemployment benefits, or the name on the form is not yours, you may be a victim of identity theft. The expanded benefits available under the newly created federal Pandemic Unemployment Assistance (PUA) program has resulted in increased activity among criminals particularly those posing as self-employed workers or independent contractors to illegally obtain benefits. Imposter claims are a type of identity theft; someone uses someone else’s personal information, including Social Security numbers, to collect unemployment compensation. Jane Doe had no control over the claim being filed; someone else did it using her Personal Identifiable Information. Here are ways you can protect yourself against identity theft and imposter fraud. Check payroll records and other company records to determine if there have been other complaints or indications that the claim has validity. If your employer already has reported to us the fraudulent claim in your name, you don't need to report it again here. For example, the New York Times article, published in July 2020, speaks of a victim who was unable to file a legitimate unemployment claim because an imposter “had filed in her name nearly six years ago. Imposter claims are a type of identity theft; someone uses someone else’s personal information, including Social Security numbers, to collect unemployment compensation. Copyright 2018 Equifax, Inc. All rights reserved Equifax and the Equifax marks used herein are trademarks of Equifax Inc. Other product and company names mentioned herein are the property of their respective owners. In a large-scale scam erupting in the midst of the Coronavirus pandemic, imposters are filing claims for unemployment benefits, using the names and personal information of people who have not filed claims. Employers are increasingly receiving phone calls and letters from individuals claiming that an employee is working with fraudulent documentation. Imposter fraud can be discovered in several ways. COVID-19 payments are higher than regular unemployment payments and presents more of an incentive for imposter fraud – and states are experiencing more of it. Essentially, … Encourage the victim to file an identity theft report with his/her local police department and advise them of the option to file Form 14039 with the IRS: Employer must protest/appeal the benefit charges, Employer must request and seek credit for improper charges, Payments of unemployment benefits went out, The state treasury may be notified of benefits for state income tax purposes, The IRS may be notified of benefits for federal income tax purposes, The employee should follow the steps listed in the above Employee Tool Kit (file police reports, lock credit reports). However, Jane Doe still works for ABC Company and didn’t file the claim. These are known as impostor claims and unfortunately, it is not uncommon to see an increase in such activity following a tragedy (fire, hurricane) or downturn in the economy (Great Recession). OLYMPIA – Employment Security Department Commissioner, Suzi LeVine, released this statement regarding the rise in unemployment imposter fraud attempts: “Since the start of May – and particularly in the past week – the Employment Security Department has seen a significant rise in reports of imposter fraud. The Michigan Unemployment Insurance Agency (UIA) today warned residents of attempts by criminals to file imposter claims in pursuit of benefits.The U.S. Secret Service (USSS) recently issued a national alert regarding an international criminal ring exploiting the COVID-19 crisis to commit largescale fraud against state unemployment programs. Imposter claims are filed using previously stolen or fraudulent personal information. Unemployment Imposter Fraud The Maine Department of Labor (MDOL) is committed to maintaining the integrity of the Unemployment Insurance Program. They may pretend to … Use only ESD’s official website:esd.wa.gov. The Michigan Unemployment Insurance Agency is warning residents about attempts by criminals to file imposter claims to try to receive benefits. A record number of Americans have applied for unemployment benefits, and ‘imposter fraud’ is affecting tens of thousands of people, federal authorities say. Claimant-Employer Fraud Reporting document, https://www.irs.gov/pub/irs-pdf/f14039.pdf. In this example, the claimant had control over his/her own actions whereas in the case of an imposter claim, the victim had no control over that activity. They help to identify many of these imposter claims prior to being issued, thus protecting the integrity of the UI system at large. He previously served as the Mortgage Solution Specialist on the Equifax Verification Services technology team and has served throughout Unemployment and Verifications Operations and Product Management at Equifax. For example, Jane Doe works for ABC Company. COVID-19 payments are higher than regular unemployment payments and presents more of an incentive for imposter fraud – and states are experiencing more of it. Another red flag is receiving mail indicating confirmation of your unemployment filing when you have not actually filed for unemployment. Applying for unemployment benefits is free. The U.S. Secret Service (USSS) recently issued a national alert regarding an international criminal ring exploiting the COVID-19 crisis to commit large scale fraud against state unemployment programs. You don’t want to accuse them but try to gather more information. Employers across the state are being warned by the Michigan Unemployment Insurance Agency this week that we are one of several states "experiencing increased activity in imposter claims being filed for unemployment." COVID-19 payments are higher than regular unemployment payments and presents more of an incentive for imposter fraud – and states are experiencing more of it. In good news, State UI agencies do have safety nets in place. For example, they earned $500 but he/she reports $0 earnings to the unemployment (UI) agency to receive an increased benefit amount. Individuals might also be denied unemployment benefits because the state agency’s system sees that someone else is still working and being paid under that same Social Security number. LANSING - The Michigan Unemployment Insurance Agency is warning residents of attempts by criminals to file imposter claims in pursuit of benefits. When an employer responds to the claim and says that the employee is still employed, the state then receives that information and pauses the claim to investigate. Not a current client? But sometimes payments get sent to the real person’s account instead. What should employers do if they become aware that an employee is a victim of imposter fraud? What is an Imposter Claim? It is important to make an individualized decision and proceed cautiously to avoid violating document abuse or discrimination restrictions or creating a potential discrimination claim by the employee. “I just wanted proof that I was not the person who filed the unemployment claim,” said Weathers. Whenever an unemployment claim is filed, employers receive notice of the claim and are required to respond. Employers across the country are receiving claims for individuals who are still employed and did not file a UI claim. Claims for Unemployment Compensation, Week Ending August 1. It is even possible that applicants denied unemployment could contact the employer of the imposter and thereby inform the employer of the fraud. Below is a good starting point of four helpful actions to share with your employees to assist them with this issue. The persistent problem of undocumented workers presenting plausible (but ultimately fraudulent) employment verification documents to employers has taken a new twist in the COVID-19 pandemic: a rise in imposter claims for unemployment insurance. She is the victim of identity theft. Individuals who need to apply for unemployment find out that they cannot do so because someone else is already collecting under their Social Security number. Sometimes, such […], States can Tap into $1 Billion in Federal Funding to Upgrade Technology and Data Use Unemployment persists even as many […], Dave Caldwell is the Strategic Product Manager for our Unemployment Cost Management product line. An imposter claim is a form of identity theft and is often the product of organized fraud ring activity. Scammers steal "hundreds of millions" using fake unemployment claims. But what if you receive information claiming that one of your employees is the “imposter”? We help employers develop proactive strategies, strong policies and business-oriented solutions to cultivate high-functioning workforces that are engaged, stable and diverse, and share our clients’ goals to emphasize inclusivity and respect for the contribution of every employee. COVID-19 … People learn about the fraud when they get a notice from their state unemployment benefits office or their employer about their supposed application for benefits. Share Share Share. Fortunately, most imposter claims are stopped before they reach that point. If the scammer succeeds in obtaining unemployment payments, they are usually deposited to accounts the imposter controls. A fraud claim would be if a claimant files his/her own claim, but fails to properly report earnings for a week in which they also collected benefits. Ultimately, the decision about how to proceed will be based on all the specific facts and circumstances regarding the employee and your company’s history regarding employment verification issues. Jackson Lewis attorneys are available to help you determine the best course of action. Her personally identifiable information (PII), such as name and social security number, is used by “organized crime fraudsters” to file an unemployment claim and collect benefits against ABC Company. The expanded benefits available under the newly created federal Pandemic Unemployment Assistance (PUA) program has resulted in increased activity among criminals particularly those posing as self-employed workers or independent contractors to illegally obtain benefits. ESD will ask you for information through official correspondence and through your ESD. The non-employee’s alarming claim may itself be false, mistaken, or part of a scam to get personal identifying information about one of your employees. If your employee falls victim to an unemployment imposter claim, you want to protect your business as well as the employee. 10. If the List A, B, or C documentation has been copied, legal counsel can assist you in examining the authenticity of the documentation. Cases of unemployment imposter fraud may appear on bank statements as “IRS TREAS 310 Tax Ref” or similar, and may appear with someone else’s name within the details. Is a Change in State Unemployment Reporting Necessary Due to COVID-19? The best path before discussing the accusation with the employee is to first check the employment records. However, to ensure its efficacy, these detection tools are proprietary and confidential. However, Jane … Rhode Island has reported 2,000 such claims. Here is an FAQ and resources that we provide our Unemployment Cost Management clients should this happen to them. Alternatively, employers may receive notices of claims for employees who have not been laid off. Keep up to date with the latest available information and resources here. Thus, only the affected employee will know the answers to the questions purposed from these tools. Imposter claims are filed using previously stolen or fraudulent personal information. Above all, unmatched tax and regulatory experts, coupled with intelligent dashboards, offers savings and protection for our clients. Public Charge Rule Blocked by Federal Court, Judge Strikes Down Administration Rules Restricting Employers’ Use of Visas, USCIS Allows Continued Use of Approval Notices to Show Employment Authorization, DHS Arrests 15 Individuals on OPT, Continues High Scrutiny of Foreign Students, Warns University DSOs, Update: U.S. Border Restrictions Extended due to COVID-19, someone else is already collecting under their Social Security number, may receive notices of claims for employees who have not been laid off, should report that to the local Department of Labor, were not pre-empted by the Immigration Reform and Control Act of 1986 (IRCA), California Employers are now Grappling with Cal OSHA’s COVID-19 Emergency Temporary Standard, Families First Coronavirus Response Act’s 80 Hours of Emergency Paid Sick Leave is ‘One Time Use’, OSHA Issues COVID-19 Respiratory Protection Guidance for Long Term Care Facilities, If someone is fraudulently collecting under your company’s account, the employer, A police report can be filed alleging identity theft by the employer or the affected employee. 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