Unemployment Claim Fraud Due to
Identity Theft Is On the Rise
Like states all across the country, Kansas is seeing an increase in reports of unemployment claim fraud due to identify theft.
Fraudulent claims are being filed using the names and personal information of people who have not lost their jobs. People are often unaware a claim has been made on their behalf until they receive a determination notice in the mail from KDOL or until their employer receives a notice to verify the employee’s status.
A review of these fraudulent claims indicates that scammers are finding personal information through incidents like credit card data breaches and then using that information to illegally attempt to collect unemployment. These fraudulent attempts are not due to a breach of the KDOL unemployment system or because of anything that you have done.
If you suspect a claim has been improperly filed using your identity or your employees’ identity, please let us know by clicking the button below. KDOL will investigate your claim, suspend the fraudulent account if suspicious activity is found and refer the matter over to law enforcement for action.
A fraudulent claim that is created using you or your employee’s personal information, including Social Security Number and date of birth, indicates that personal information is exposed and there is risk of further financial harm. In such cases, we recommend the following steps:
- Notify all three major credit reporting bureaus and request a “fraud alert” on your credit report:
Consumer Fraud Division
P.O. Box. 740241
Atlanta, GA 30374
Fraud Victim Assistance Dept.
P.O. Box 6790
Fullerton, CA 92834
National Consumer Assist
P.O. Box 9532
Allen, TX 75013
- Contact your banks and credit card companies. Follow their advice as to whether you should close your account.
- Contact the Social Security Administration at 1-800-269-0271. Order a copy of your Personal Earnings and Benefit Estimate Statement (PEBES) in order to check the accuracy of your work history on file with the SSA.
- Notify the Internal Revenue Service’s (IRS) fraud hotline at 1-800-908-4490. Request a copy of your Wage and Income Transcript from the IRS. You will need to report and dispute any fraudulent earnings listed on the Wage and Income Transcript. You can go to http://www.irs.gov/privacy/article/0,,id=186436,00.html for additional IRS information. Call 1-877-487-2778, between 8:00 a.m.-10:00 p.m., Eastern time.
- Go to www.ftc.gov to file a report with the Federal Trade Commission.
Unemployment fraud is a felony. It is the willful misrepresentation of information to collect unemployment benefits. Each year, employers pay unemployment taxes which are deposited into the Unemployment Insurance Trust Fund. Unemployment benefits are paid out from this fund to workers who have lost their job through no fault of their own. Employers’ tax rates are affected when workers make claims against their account and the balance of the Trust Fund. KDOL wants to ensure unemployment benefits are not being diverted from the Trust Fund to those who are not eligible. Kansas law provides penalties to claimants and employers who commit fraud.