What to Do if Someone Applied for Unemployment Under Your Name?

You can become a victim of unemployment insurance fraud if someone files for unemployment benefits using your personal information. You may learn about it only if you receive notice from your employer, a letter from a state unemployment insurance agency, or when you apply for unemployment yourself.

If you have been the victim of unemployment insurance fraud, it's important to take action as soon as possible to prevent further damage. Someone who can apply for benefits in your name has your information and can use it for purposes besides filing for unemployment insurance. A person who knows enough about you can open credit cards or utility accounts in your name, use your health insurance to get medical care, or use it for other purposes to achieve illicit financial gain.

Signs That You May Be a Victim of Unemployment Identity Theft

• If a government agency contacts you about an unemployment claim or payment, but you haven't recently applied for unemployment benefits.
• If you received an IRS Form 1099-G stating unemployment benefits that you did not receive, or the form has an amount that exceeds the unemployment benefits you did receive.
• If you received Form 1099-G from a state where you never filed for benefits.
• If you received any correspondence from IRS regarding unreported unemployment benefits.
• If your employer notifies you that they received a request for information about your unemployment claim while you are still employed.

Here are the steps you can take if you suspect a fraudulent claim has been submitted under your name.

Report the Fraud

Promptly reporting unemployment insurance fraud will help states act quickly to stop the improper payment of unemployment benefits and limit potential delays in receiving unemployment benefits should you need them in the future. Keep all confirmation and case numbers you receive. When you speak with agents, keep a record of who you talked with and when.

Report to the Unemployment Insurance Agency

Report the fraudulent claim to the unemployment insurance agency in the state that issued the benefits. Make sure you follow all the instructions given by the agency. Contact information for every state for reporting potential fraud is available on the U.S. Department of Labor website.

You also might want to follow up with state investigators until the issue is resolved to ensure you won't have any problems in case you need to apply for unemployment in the future.

Report to Your Employer

Inform your employer of the fraudulent claim, as they must also file documentation.

Report to the Federal Trade Commission (FTC)

Report the fraud to the Federal Trade Commission (FTC) and ask for help with the recovery steps. Visit IdentityTheft.gov for more information.

File a Police Report

Contact your local police department and file a report of the fraud. Some states may require filing a police report to open an investigation, and some financial institutions and credit bureaus may require a police report for the recovery processes or disputes. Police reports provide additional documentation and assist authorities in identifying recurring fraud.

How to Protect Yourself from Unemployment Identity Theft

You can reduce the risk of becoming a victim of unemployment identity theft by taking some simple steps. If you were a victim of unemployment fraud, you should consider extra measures to protect yourself from further use of your stolen personal information.

Freeze Your Credit

Consider freezing your credit. A credit freeze is one of the best ways to protect against unauthorized accounts opened in your name. A credit freeze prevents access to your credit report, preventing the opening of new accounts in most cases. You can easily lift a credit freeze when you need to open a new account.

If an imposter has used your information to claim unemployment insurance benefits, setting up a credit freeze may be a good idea.

If you want to freeze your credit, place a freeze request with three major credit bureaus - TransUnion, Experian, and Equifax. You can request a freeze via their websites or by calling them.

Monitor Your Credit Report

Review your credit reports often for suspicious activity or credit lines and other accounts that aren't yours. You can request free credit reports from the three major credit bureaus through AnnualCreditReport.com.

Place Fraud Alerts

If you don't want to place a freeze on your credit reports, consider placing a fraud alert. Place a one-year fraud alert by contacting one of the three national credit bureaus. You don't have to contact all three bureaus. If you place a fraud alert with one, they will notify the other two to place a fraud alert on your reports. A fraud alert on your credit reports will make it more difficult for someone to open new accounts in your name. Lenders must take extra steps to verify your identity before extending credit in your name. You can renew the fraud alert after one year.

You can request an extended fraud alert if you provide a letter from your state unemployment office or police report confirming you were a victim of unemployment fraud. An extended fraud alert remains on your file for seven years.

Dispute Fraudulent Accounts and Credit Lines

If you don't recognize an account or credit line on your report, you can submit a dispute to the credit bureau that has the mistake. The credit bureau may require supporting documents like a police report and your identity theft report to start an investigation.

Be Careful When Sharing Information

Scammers are creating websites mimicking official unemployment benefit websites to capture people's personal information. Never send your information or documents to unverified sites or in response to requests from social media, emails, or text messages. Before sharing your personally identifiable information, ensure that you use a legitimate website.