While this isn't a new form of fraudulent activity, we have seen a surge in 2020 of scam unemployment filings. With unemployment rates climbing in 2020, now is an opportune time for criminals to attempt filing along with so many legitimate claims.
We've had numerous clients reach out with concerns. Learn how this happens and how to report these frauds:
How it Happens
Criminals find personally identifiable information such as social security numbers, names, addresses and locations of work. Once they find it, they add this information to the Dark Web for sale. By listing this information on the Dark Web, it now means that anyone can purchase and use it - however they would like. Click here to read RBSK IT's Dark Web blog to see more.
Owners are responsible for paying FUTA and SUTA tax for employees. Owner's employer tax accounts are charged when benefit payments are paid, which means owner's see an increase in state tax rates. Thus, when a former employee files for unemployment benefits, owners are indirectly footing the bill.
Ultimately, the more unemployment claims the state approves, the more owners contribute for unemployment taxes. Note: COVID-19 has impacted this in many states and there are now exceptions.
When a person files for unemployment, their most recent employer receives a notice from the state. This notice asks whether or not owners want to contest the claim. Once owners receive a notice, they must take action. Do you think the notice is incorrect? We recommend first speaking with that employee to determine if they actually filed this claim.
If owners discover their employee did not file for unemployment, owners are now possibly dealing with a fraudulent filing.
Email Fraud Reporting
Type a short statement regarding why this filing is inaccurate. Include the following information from the claim you received: employee name, last four digits of their social and employee's phone number in the message.
Once you send this message, you will receive a response alerting you to the status of this claim as well as additional steps the employee can take to protect the employee's identiy.
For additional ways to report fraudulent unemployment benefit claims click here.