Unemployment Fraud Is On The Rise

Unemployment Benefits Unemployment fraud is a growing issue for many employers in Texas. A form of identity theft, unemployment fraud occurs when an individual knowingly collects unemployment benefits using a social security number or other private information that does not belong to them. If you or your business become the victim of fraudulent unemployment benefits claims, there are several steps you can take to dispute the claim.

  1. In order to file an unemployment benefits claim, a social security number is needed. This information is often obtained through online data breaches from companies that utilize and store personal identity information, such as a payroll provider. If your company has been hit with a fraudulent unemployment benefits claim, it would be prudent to first find out if your payroll provider experienced a data breach. If it did, expect to see more fraudulent unemployment claims come through.
  2. Hold off on any communication with your employees until you know for sure the payroll provider had a data breach to avoid causing unnecessary stress and chaos.
  3. Notify the Texas Workforce Commission (TWC) that you have received fraudulent requests for unemployment by going to their Fraud Portal. You can also contact them via email for additional support.
  4. In addition to contacting TWC, please report fraud to the Texas State Auditor’s office, Federal Trade Commission and any of the major credit reporting agencies so they can file a fraud alert.

For additional information on fraudulent unemployment benefits claims, please contact your payroll services provider.

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