Labor and Economic Opportunity
UI Fraud is a crime, and it affects everyone. It drives up unemployment taxes for businesses, it affects people with legitimate unemployment benefit claims, and it puts a strain on the state’s unemployment trust fund. The person committing fraud could be a claimant who is intentionally misrepresenting information being provided to the Unemployment Insurance Agency (UIA) when filing and/or certifying for unemployment benefits or could be a traditional fraud matter whereby a criminal is impersonating or representing themselves as a claimant for unemployment benefits. In every instance of fraud, individuals may face criminal prosecution, fines, and penalties of up to four times the amount.
Individuals or businesses that deal in cash only or use other schemes to hide their activities and their true tax liability such as:
Identity theft occurs when someone uses another person's information—including wage, employment, and credit card information—to take on their identity. Identity thieves can also use another person’s name, Social Security number, and employment information to illegally file UI claims and collect UI benefit payments.
If you suspect that identity thieves have used your personal information, or the personal information of one of your employees to file a false UI claim, it is essential that you act fast to help the UIA stop an imposter claim.