Unemployment Insurance Fraud

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Unemployment insurance fraud occurs when individuals provide false information, typically obtained by  Identity Theft, to receive or increase unemployment benefits. This can involve misrepresentation of employment status, income, or other relevant details, including filing claims under a victim's name.   The funds are transmitted by the states into financial accounts controlled by money mules who are either willing or unknowing participants in this crime.

Perpetrators can also exploit system vulnerabilities to commit fraudulent activities, such as selling or trading benefits, misrepresenting eligibility, or using fraudulent information to obtain benefits. The loss of funds intended to support unemployed persons can significantly impact their financial well-being, and deprive families of the assistance they need. 

  • Frequent and abrupt changes in application information.
  • Unexpected mail regarding unemployment benefits.
  • Notifications from employers about unemployment claims when you are still employed.
  • Requests for fees or payment to expedite benefits. 
  • Unusual bank account changes for benefit deposits. 
  • Failure to report accurate income information to qualify for higher benefit amounts, constituting fraudulent behavior.
  • Individuals submitting multiple applications using different identities to receive duplicate benefits.
  • Safeguard personal and financial information; burn or shred old documents with identity information.
  • Use secure online connections for submitting sensitive identity information.
  • Regularly monitor unemployment claims and benefits if you receive them. 
  • Verify the legitimacy of communications regarding unemployment benefits.
  • Choose strong, unique passwords, use a pasword manager, and Enable multi-factor authentication for online accounts.  See Cyber Crime Prevention. 
  • Do not share your PIN with anyone outside your household. Cover the keypad when you enter your PIN on a machine. 
  • Check your financial accounts regularly for unauthorized charges. If you notice any, change your PIN immediately to stop the thief from making new purchases.
  • Please contact the Maryland State Department of Labor (DOL) Benefit Payment Control Unit at https://www.dllr.state.md.us/employment/uibpc.shtml Then complete the “Request for Investigation of Unemployment Insurance Fraud” form at   https://www.dllr.state.md.us/forms/uifraudtipform.pdf and email it to [email protected]. The DOL will be able to investigate the matter and provide guidance on what steps you should take next The Benefit Payment Control Unit can be reached at 1-800-492-6804 to answer your questions about this request. 
  • Call 301-279-8000 and file a report with the MCPD.
  • Meanwhile, you should assume you have been a victim of ID theft  and take steps to prevent further fraudulent activity and financial impacts. 
    • Monitor credit reports for any suspicious activity and place fraud alerts and credit freezes if necessary. 
    • See Identity Theft. 
    • Keep records of all communications and relevant information.
    • Retain any notifications or correspondence related to the fraudulent activity.
  • Victims should fully cooperate with any investigations conducted by authorities, by providing necessary documentation and information. 

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