What’s Happening
With the rise in unemployment claims due to the pandemic, the number of fraudulent unemployment claims has tripled. A new type of fraud involving identity theft has become widespread. The scammers will steal the identity of an employee and file an unemployment claim in their name. This will then send a notification to the employer that this person is trying to file for unemployment. This can be confusing and alarming because oftentimes the employee whose name has been stolen to make a fraudulent claim is still currently employed with the company. Identity thieves have even tried to file claims using the names of two current Texas senators, who were both clearly still employed. These victims of fraud are sometimes experiencing backlash from employers, doubling the extent to which they are victimized.
TWC Press Release
The TWC issued a press release on March 28, 2021, urging employers to recognize fraud and report it. Employers who receive a claim notice for an employee who is still employed should respond to the notice immediately stating the claimant is still employed. See the link to the press release below.
https://www.twc.texas.gov/news/employers-encouraged-recognize-and-report-fraud
Combatting a Nationwide Problem
This new type of fraud is not unique to Texas. States across the country, including Washington, Pennsylvania, North Carolina, Ohio, Virginia, Iowa, and New York, are dealing with rising numbers of identity theft and fraudulent unemployment claims. It is important that employers everywhere stay hypervigilant to combat this form of fraud, and report suspected fraud to state and federal agencies immediately. Employers should also notify their employees of the prevalence of this scam, warning them to be on the lookout for unrequested funds or unemployment notifications. The DOJ, DOL, FBI, and Secret Service are all working in conjunction with state agencies to identify, investigate, prosecute, and prevent fraud.