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How to Spot Common Scams and Fraud

How to Spot Common Scams and Fraud

Common Types of Fraud

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Claimant Fraud

Claimant fraud can include various activities including,

  • Working while collecting benefits and not reporting hours of work and earnings;
  • Supplying deceptive information or failing to disclose information such as vacation/holiday pay, severance pay, or other pay after job separation;
  • Providing false work search efforts;
  • Failing to report not being able and available to work (ill or injured, on vacation) while collecting UI benefits;
  • Using another person’s identity (name or social security number) to work and/or file a UI claim;
  • Failing to report refusals of work;
  • Providing a dishonest reason for separation.
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Employer Fraud

Individuals or businesses that deal in cash only or use other schemes to hide their activities and their true tax liability such as:

  • Providing false information to prevent an otherwise eligible claimant from obtaining benefits;
  • Paying employees "under the table" to avoid paying taxes;
  • Incorrectly reporting wages;
  • Intentionally misclassifying employees as independent contractors.

Common Types of Scams

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Identity Theft

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 unemployment claims and collect benefit payments.

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Phishing and Smishing

Phishing is when a scammer tricks you into giving out personal information. This scam entails a request for your personal information, like bank account numbers, or social security number. One variation of this scam is smishing, which occurs over text.