Employers should be on the lookout for fraudulent Unemployment Insurance claims

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Categories: Coronavirus

Unprecedented claim volumes are driving a dramatic increase in fraudulent unemployment claims across the country – North Dakota included.

Job Service North Dakota uses multiple types of fraud identification and prevention tools, but the most effective fraud prevention tool available is North Dakota’s employers. 

What to look for

When an unemployment insurance claim is filed, a Notice of Claim is sent to each of the employers the claimant worked for in the last 18 months.  It is critical that employers review these notices and let Job Service know if the individual is still working or if the claim is unexpected or suspicious.  Preventing payment on fraudulent claims benefits all employers by limiting the severe impact this pandemic period will have on the Unemployment Insurance Trust Fund balance.

Job Service has identified multiple instances of fraudulent claims being filed in North Dakota using the personal information of individuals who remain employed and who have not actually filed a claim for benefits.  In several of these situations, the employer of the individuals whose data was used to file the claim notified Job Service after receiving a Notice of Claim for the individual.  By notifying Job Service of the fraud, these employers were able to prevent thousands of dollars in payments to criminals who falsely filed claims.

The criminals committing the fraud gather personal information from multiple sources, from buying social security numbers on the dark web to gathering demographic and employment data from various public web sites and social media.  These sophisticated schemes are often hard to detect and ultimately can result in very large losses.  Although fraudulent attempts to receive unemployment insurance benefits happen regularly, periods of disaster which result in a large volume of unemployment insurance claims provide an opportunity for criminals and organized crime to ramp up their efforts.  

Job Service North Dakota is asking every employer to pay close attention to any Notice of Claim and other materials sent to them by Job Service and to report potential fraud.   

To report fraud call 701-328-2866, document your concern on the Notice of Claim you receive and return it to Job Service, or at jobsnd.com, under Unemployment for Business choose “Report Unemployment Fraud.”

https://www.jobsnd.com/unemployment-business-tax/report-unemployment-fraud.

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