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Unemployment Fraud in United States

If you knowingly receive benefits based on ungenuine information that you purposely provided when you registered your claim, you are committing fraud. Anyone who commits unemployment insurance fraud is liable to be punished by law and could even face a variety of serious penalties and consequences.

For most jobless workers and their families, UI benefits are continued survival. Unfortunately, a few can ruin a good thing. If you file for benefits and try to receive income that in any way misguides the government, you could be guilty of fraud. Unemployment fraud is a crime in every state and the violators could be charged with fines and even imprisonment.

A nationwide suppression is coming for people unfairly drawing unemployment payments- those who were never eligible and people who have begun working in new jobs but keep getting their unemployment checks. With the poor economy remaining and the jobless rate remaining high, many states are stepping up efforts to stop the improper payments.

You’d think the debt crisis would result in crackdowns on government, but as the claims increase in this jobless recovery, blames in unemployment insurance have hit record levels. Last year, ineligible individuals were paid out a huge $16.5 billion. In the recent months, over-payments have jumped again to 11.6 percent. According to Labor Department’s estimation made in 2010, 30 percent were individuals who continued to cash their UI checks when on work and another 30 percent were people not properly or actively searching for work.

What is considered unemployment fraud?

Unemployment fraud can be someone telling a white lie to extend their benefit or it can also include the fake policies being sold.

Here are a few of the most common examples in which you are held legally liable responsible for your insurance benefits:

Looking for Work

You are required to actively look for a work as a condition of unemployment collection and be mentally and physically able to work unless you’re on a temporary dismiss or a union worker. It is mandatory to attest to that fact each time you file a weekly payment claim. If you do not seek work and lie about looking for work or about being able to work…guess what? You’re committing a crime.

Personal Information

When you apply for an UI benefits claim, your application is a legal document. You are expected by law to provide your personal details like name, social security number, current phone number, current address and current employment information. Any misrepresentation of your identity and employment situation is considered fraudulent. Using anyone else’s personal information to collect benefits is identity theft.

Reporting Income

Besides being eligible and seeking work, you must also reveal any extra income you earned. For instance, if you earn from some freelance consulting or do part time job, you are required to disclose these wages. Any extra income you earn from part time or freelance work is figured out into your benefits claim. If you fail to report additional income while you are receiving state unemployment pay is an offence. It is advisable to give the most correct information you can when filing for your unemployment benefits.

Laid-off workers, Be Alert!

Some of the insurance companies and those who sell fake policies know it will probably be some time before you actually collect on your policy. This makes it very simple for them to take your money and run as by the time you actually claim on your policy they are gone. Do not give any personal details over the Internet. Once they have your account numbers they can do far more damage than a fraudulent policy. If the company is registered in your state, then go ahead and purchase. Finally, it is good to purchase policies from large and reputed companies and avoid becoming victim of unemployment benefits fraud.

Online unemployment fraud

Any organization with a website is not a business. You are likely to deal with a scam company if the legal framework is not there. All authorized US companies have a federal tax ID number that are confidential and not to be shared with customers without reasonable purposes. The products offered by the illegitimate companies do not have any guarantee and the services are not insured. They are not paying taxes and therefore not contributing to the economy and encouraging illegal employment in the US or offshore.

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  1. I have not received my benefits yet I have been waiting 10 weeks without an explanation, however I have recently been offered job will I still receive my benefits that are owed to me once approved or once I report that I am working will my claim be denied.

    • Please call the Unemployment Office immediately to know the status of your claim.
      It will continue to be processed unless you report about being employed.

    • You can visit the official website of the Unemployment Office in your state to find details about the procedure and phone numbers.

      Please report at the earliest.

  2. In 2009 my ex husband Richard f gagne Don took my identity to obtain a job thru sweetbay in homasasa springs thru a company elite care”I could not of cleaned and buffed floorsand i myself I never recieved checks thru this company we were divorced 3-24-2011 and when I filed for my taxes is when was notified of this.I had to pay taxes on this and pay $back.I signed identity thief and fraud no one could find him!he lives in Springhill Fla works at realistate company richardfgagne realtor [email protected] info from sister Lucy Howard and friend Debra maxi Pezziti working at bphr in Hudson Fla

    • Please note this is a website dealing with Unemployment Benefits. Not sure if your question has anything to do with it.

      If there is a fraud, please contact the law enforcement agencies for relief.

  3. I know someone who has committed unemployment fraud. How do I notify unemployment of this? Also, it’s been a while since this was done so is there a statute of limitation on it?

    • There will be zero tolerance with regard to fraudulent claims and that holds with time limits as well.

      Please go the official website of the state you would like to report from and find the procedure to report fraud there. You can write back to us if you need any further assistance.

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