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Maintaining the integrity of the Unemployment Insurance (UI) program is important and helps ensure benefits are paid only to those who qualify for benefits under the law and employers are assessed the proper tax rate.
Claimants commit fraud by providing false or inaccurate information to the department when filing a claim for unemployment benefits in an effort to obtain monies to which they are not entitled.
Employers commit fraud when they provide false information to the department in an effort to obtain a lower tax rating or deliberately misclassify an employee as an independent contractor to avoid paying UI tax altogether, or when they have knowledge that a claimant is submitting or intending to submit a false claim (aiding and abetting).
Multiple detection systems are used to detect people who fail to report working and earning wages while claiming unemployment benefits.
The penalties for fraud and concealment are severe. In addition to penalties, any overpaid benefits must be repaid. Repayment methods include income tax interception, wage garnishments, property liens and payment plans.
Contact us to Report Unemployment Fraud if you are aware of claimants or employers committing fraud or an imposter claiming your benefits.
You may be a victim of identity fraud if you have reason to believe someone has fraudulently filed for unemployment benefits using your identity.
Visit the Identity Fraud webpage for more information.
Learn how to identify and avoid unemployment scams targeting claimants and employers to obtain private information.
Learn how to protect yourself at the Avoiding Scams webpage.
See the Frequently Asked Questions webpage for commonly asked questions regarding fraud.
Fraud-Related Publications are available as a resource.