Prevent Fraudulent Unemployment Claims
Due to the coronavirus pandemic’s impact on unemployment rates across the nation, the FBI has noted an increase in fraudulent unemployment claims. Although these claims often list a previous or current employee’s correct name, they are instead filed by scammers using stolen personally identifiable information (PII.)
The FBI gives employers and employees useful information in dealing with fraudulent claims. See it here.
Employer Prevention
Before completing the unemployment paperwork, employers should first verify that the employee submitted an unemployment claim, especially if they have not had any recent changes to their employment or pay rate. Businesses should also pay attention to the quarterly wage summary on the unemployment claim. On fraudulent claims, the wage amount is often grossly inaccurate (for example, listing an employee’s wages as $123,456 or a six-figure salary for an entry-level position.)
Employee Prevention
To prevent becoming a victim of identity theft, employees should be wary of phone calls, emails, or letters asking for PII. Additionally, regularly monitoring bank and credit card accounts and reviewing credit reports at least once per year can help employees identify if their information has been stolen.
Assistance for Nevadans
In Nevada, the Department of Employment, Training and Rehabilitation (DETR) advises employers to write “FRAUDULENT” in large letters on the Employer Response Form. There is also a page on their website where fraudulent claims can be submitted. Access it here.
Bailey Cummins, PHR, is a member of the HRinDemand team, a human resources company in Reno, NV, offering expert guidance and easy-to-use tools to help small businesses with employment regulations, compliance, employee relations, and company growth.
Sources:
Federal Bureau of Investigation. (2020, July 6). Press Release: FBI Sees Spike in Fraudulent Unemployment Insurance Claims Filed Using Stolen Identities. https://www.fbi.gov/news/pressrel/press-releases/fbi-sees-spike-in-fraudulent-unemployment-insurance-claims-filed-using-stolen-identities