FileUnemployment

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.

22 thoughts on “How To Survive Unemployment”

  1. I am currently receiving unemployment in texas and my benefits is coming to an end and I still have not found a job can I apply for an extension.

    1. Andie,

      The E.U.C(Emergency Unemployment Compensation) remains expired. There is no extension available. Please inquire further with the labor authorities in your state by calling them.

  2. I work for a car wash in Reno,NV. Now that its winter time can I file a claim to make up for the lack of hours I was accustomed to before winter. now granted the people in charge are always screaming we gotta keep labor down. To me the way they keep labor down is not giving the employees there schedueled breaks and making them punch out for an additional 30min. Now because of that I lose more than 10 hours per week. that’s affecting my pay check tremendously. So my question is can I file a claim to make up the difference and keep my job?

    1. Henry,

      If you’re on the rolls of your employer (not on contract) and the employer remits unemployment taxes into the system, you can be eligible to claim partial UI benefits.

    1. Stephen,

      You should have applied for benefits during the period of unemployment. You will not be able to claim in retrospect. Please call the Unemployment Office for clarification.

  3. WHEN AND WILL NEVADA SEND ME A 1099-G ,FOR U I BENEFITS RECIEVED FROM, 9/2018 TO END OF YEAR,EVEN THO I AM STILL GOING TO BE RECIEVING BENEFITS TILL 3/2019 POSTAL OR ONLINE? I HAD TAX WITHHELD SO I GUESS I NEED IT TO FILE

  4. I worked in PA for the last 8 months and for 4 years in NJ before that. There was no break in employment. I was laid off yesterday from the PA job. I think I should apply in PA but how would I make sure that wages from both states are accounted for?

  5. I worked in Maryland for 5 years and was on Maryland unemployment for a month before finding another job and should still have an active Maryland claim there. The new company I work for is based in Virginia and I started in early November until the government shutdown in late Dec. Should I file a new claim in Virginia or continue with Maryland UE? Also I picked up a part time job on weekends 3 weeks ago averaging about 18 hours. How would that work?

    1. Matt,

      Since you’ve already filed a claim in Maryland, please wait for a determination to be made. You should report the income from the part-time job to the Unemployment Office. Please call the Claims Center.

    1. Ralph,

      The E.U.C(Emergency Unemployment Compensation) remains expired. There is no extension available. Please inquire further with the labor authorities in your state by calling them.

  6. I worked in Washington State in January, 2017 to March, 2018. I worked in Montana from March, 2018 to March, 2019 My residence is in Washington State. Which state do I apply for Unemployment Insurance?

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