CCC + TCC + Emptech are now Experian Employer Services. Learn More

An unfortunate result of the Covid-19 pandemic has been an increase in fraudulent unemployment claims being filed throughout the United States.  According to the IRS, “all states have experienced a surge in fraudulent unemployment claims filed by organized crime rings using stolen identities. Criminals are using these stolen identities to collect benefits across multiple states fraudulently”. Recently CCC has noted a second wave of fraudulent unemployment claims, most notably affecting Illinois, Maryland, Pennsylvania, and Washington.

The “Continued Assistance for Unemployed Workers Act of 2020”, signed by the President in December of 2020, made efforts to require state unemployment agencies to prevent continued fraud. The legislation required that all agencies must take steps to “reasonably assure” the identity of the individual filing through verification/validation procedures.  Shortly after the signing of the legislation, Experian and NASWA announced “that due to unprecedented unemployment fraud since the start of COVID-19, Experian was selected as the exclusive partner for identity and fraud verification for the Unemployment Insurance (UI) Integrity Center’s centralized Identity Verification (IDV) capability. This service is available to state agencies at no cost through UI Integrity Center, operated by the National Association of State Workforce Agencies (NASWA) in partnership with and funded by the US Department of Labor.”

While steps were being taken to have state unemployment agencies prevent fraudulent filings from receiving benefits, in February of 2021, the US Department of Labor released a report indicating that fraudulent unemployment claims resulted in between $63-$85 billion in improperly paid benefits since March of 2020.  The Inspector General (DOL)indicated that more federal government outreach is necessary to combat the fraud due to the antiquated systems, understaffing, and the inability or failure of state unemployment agencies to crossmatch unemployment insurance filing for benefits in multiple states. The seriousness of the UI Fraud issue resulted in the Department of Labor launching a website in March of 2021 to help Americans report unemployment fraud.

The federal government is also attempting to pass new legislation which they believe will combat new fraudulent claims from being filed, return fraudulently collected benefits back to state agency funds, and protect those individuals affected by these claims. The recently introduced, Combatting COVID Unemployment Fraud Act of 2021 (HR 3268) would:

Unfortunately, as the federal and state unemployment programs are taking steps to combat fraudulent unemployment claims, these criminals continue to stay one step ahead.  The Department of Justice recently warned that these criminals are now creating fake unemployment benefit websites to capture consumer data, providing them with the information necessary to bypass the state and federal safeguards.  These criminals use “phishing” texts and emails to bait individuals to fraudulent websites via links that appear to be from legitimate agencies.

CCC monitors all unemployment-related legislation both federally and at each state, providing updates via our website and via email.  Unemployment fraud has become such an important topic that CCC has prepared a comprehensive fraud guide for our clients. Be sure to look for updates as information becomes available.


Contact CCC to see how we can save your organization time and money.
Contact our Sales Team
(800) 207-6926

Featured Videos

View All Videos

Latest News

Close

Sales

    Your Name:*

    Title:

    Company Name:*

    Company Address:

    Company City:

    Company State:

    Company Zip:

    Number of Employees:

    Your Email:*

    Phone Number:*

    Fax Number:

    Check the boxes below if you wish to receive information on any of the following:

    Unemployment Cost ControlTax Credits & Incentives (WOTC)Employment / Wage Verification

    Your Message:

    Employment & Income Verfication

      Your Name:*

      Title:

      Company Name:*

      Company Address:

      Company City:

      Company State:

      Company Zip:

      Number of Employees:

      Your Email:*

      Phone Number:*

      Fax Number:

      Your Message: