3 Signs Of Unemployment Benefits Scams, And How To Avoid Them

During the coronavirus pandemic, more than 40 million Americans have applied for unemployment benefits, and fraudsters are obtaining some of those benefits through deception.

People in several states have recently been targeted by fraudulent unemployment benefits schemes.Washington state officials said Thursday that they had recovered $300 million in unemployment benefits paid to criminals making false claims.In Massachusetts, officials added new identification steps after finding that “a large number of illegal unemployment claims” were causing delays in the payment of unemployment benefits.

In a fraud alert, the U.S. Department of Labor’s Office of Inspector General said scammers also offer to help individuals apply for unemployment benefits.The alert states, “Unsolicited phone calls, social media platforms, and door-to-door visits are a few of the ways scammers are utilizing.”

Don’t be fooled.Look for the following signs that your unemployment benefits communications are not legitimate:

1.There shouldn’t be a charge, but there is.

As the Department of Labor’s Office of Inspector General points out, “You do not have to pay anyone to apply for or receive your benefits.”You should apply for free through your state’s official unemployment insurance agency.

Don’t be swayed by what others tell you otherwise.

2.You are not on the actual government agency’s online portal.

Be wary of websites and social media pages that clone or mimic government agencies.

Alabama Department of Labor Secretary Fitzgerald Washington shared an alleged scam on the Alabama Department of Labor’s website in a recent press release on a fraud case.

We know of at least one Facebook page that cloned the official ADOL Facebook page and then contacted those who interacted with the legitimate page, offering fake prizes and requesting their permission to apply for benefits on behalf of claimants.

If you want to double-check that you’re using the official platform of your state’s unemployment insurance agency, visit CareerOneStop, which is sponsored by the Department of Labor and compiles the appropriate links and phone contact information for each state’s unemployment benefits system.

3.You are asked to share sensitive information via text or email.

When you apply for unemployment benefits, your state unemployment insurance agency will ask you to share personal information related to your unemployment and recent income.

They will ask for your social security number, your name, your address for the last 18 months, the name and address of your employer for the last 18 months, and a record of all your earnings for the last 18 months.

Some state agencies may also contact you to verify your identity due to recent nationwide scams.You need to respond as soon as possible, preferably electronically if possible, as the processing will be slower if you submit the verification on paper.

However, you should not be required to share or verify this sensitive information via text message or email – this information should be done through the state’s official unemployment insurance portal.It’s up to the state, but they won’t direct you anywhere other than the state unemployment insurance website, and they won’t mail your information to the state unemployment insurance agency.

For example, the Wisconsin Department of Workforce Development asserts: “We will not ask you for personal information or verify your eligibility for unemployment benefits via email or text message.”

To get around the queue, some state unemployment insurance agencies will call applicants back by phone, but it’s unlikely that the agency will call you out of the blue.You’ll know you’re already in line for a callback.

If in doubt about the authenticity of a communication, look up the official phone number and website for unemployment benefits in your state and compare it to the information you receive.