Beware of Unemployment Claim Scams –Even if You Aren’t Currently Unemployed

By Britt Erica Tunick

The coronavirus has turned the world upside down, forcing social distancing and business closures that have resulted in record job losses. Unfortunately, unemployment is not the only thing skyrocketing amidst the pandemic. Criminals have been stepping up their efforts to take advantage of the situation by hijacking the accounts of individuals who are currently out of work or filing false claims on behalf of others who are still employed.

With the Coronavirus Aid, Relief, and Economic Security (CARES) Act having increased the amount of money that individuals collecting unemployment benefits receive by an additional $600 each week through July 31, 2020, stealing people’s unemployment funding is a more attractive prospect for criminals than ever before. Added to that is the fact that the soaring unemployment claims have overburdened state unemployment systems, leaving state unemployment employees struggling to keep up with the number of filings and increasing the likelihood that fraudulent claims could go undetected.

Through a combination of both phony bank accounts and hijacked accounts, criminals are able to access unemployment benefit checks intended for others. Once the funds are received, they drain the accounts and then close them, eliminating any potential trail by which investigators can track the criminals down. In some cases, the theft is done by obtaining login information to hack into existing bank accounts. However, there are also cases where criminals will use stolen personal information to impersonate an individual and then open a bank account under their name without the real owner ever being the wiser. While such fraud is not new and is already on the radar of the banking industry, the unusually high amount of deposits due to government assistance programs that have been pouring into banks since the start of the pandemic has made it even harder for banks to identify this type of activity.

Whether you are currently collecting unemployment benefits or not, the FBI advises individuals to be on the lookout for suspicious activities that could indicate unemployment fraud. Following are some things to keep an eye out for:

• Emails, websites, text messages, phone calls or letters asking for personal information such as your Social Security number and birth date.
• Emails from unknown senders that contain any sort of link or attachments.
• Any unusual activity or transactions on your bank statements or credit cards involving unemployment benefits.
• Any emails or hard copy communications you receive regarding unemployment forms or benefits if you have not applied for them.
• Inquiries regarding unemployment benefits.
• Fees related to qualifying or filing for unemployment benefits.
• Links received in emails or found on social media to websites claiming to represent government agencies handling unemployment claims. If you need to file an unemployment claim you should go to the following website to find information about where/how to file a claim in the state where you live: https://www.usa.gov/unemployment.