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Identity theft is on the rise in both the private and public sector. The growing problem of committing unemployment fraud using stolen IDs not only affects the victims - those who have had their personal information compromised - but it also can have a negative effect on an employer’s tax rate.
Identity theft occurs when someone uses another person’s information to take on his or her identity. Identity theft can include wage and employment information as well as credit card and mail fraud. In the case of unemployment benefits, it could mean using another person’s information such as name, Social Security Number and employment information.
As employers, you can help save millions of dollars in fraudulent payments by identifying suspected fraud. In many cases, you may be the first to have information that unemployment fraud is occurring.