MSB Blog

Right now, unemployment fraud is at an all-time high due to the astounding number of pandemic related layoffs and closures of workplaces. At least $36 billion has been stolen from struggling Americans by criminals. Now more than ever it is very important to educate yourself about what unemployment fraud is and how to prevent it from happening to you.

What is unemployment fraud?

Unemployment fraud involves identity theft and occurs when a criminal uses someone else’s personal information, like their social security number and date of birth, to apply for unemployment benefits. Most con artists seem to be interested in the Pandemic Unemployment Assistance (PUA). The PUA is a temporary program that was developed by the federal CARES Act back in March 2020. It offers unemployment aid to those who would not ordinarily qualify for unemployment benefits, such as Americans who are self-employed, gig workers, freelance workers, contractors and part-time workers. Thieves are attracted to the potentially large pay associated with the PUA, sometimes cashing in on more than $10,000 or $20,000 per fraudulent claim.

Red Flags of Unemployment Fraud

• You never made a claim for unemployment compensation, yet you have received a 1099-G tax form from the IRS summarizing your unemployment compensation for the year.
• You are still employed and your employer informs you that an unemployment claim has been filed using your information.
• You have received a communication from the Department of Unemployment Assistance via text message, email, or letter regarding a fraudulent claim. It is important to note that these communications are most likely legitimate, the Department of Unemployment Assistance will communicate fraudulent claims to you in this way.
  • Communications from the Department of Unemployment Assistance will always direct you to Mass.gov resources, if they do not then they are not legitimate communications.
  • The Department of Unemployment Assistance will never request your personal information, like your social security number, bank account information, or credit card information, via email or text message. Emails or text messages claiming to be from the Department of Unemployment Assistance that do request this type of information are fraudulent. 

How can you prevent Unemployment Fraud?

• Do not share your online passwords with anyone.
• Create unique and complex passwords for all of your online accounts.
• Keep your social security number safe.
• Check your credit report often and thoroughly.
• Monitor our credit card statements and bank accounts.
• Stay informed about current and common fraud attacks.
• Be aware of fake websites, scammers will create fake websites mimicking the names of official websites. Some examples of official websites include:
  • The official Massachusetts state website: www.mass.gov/
  • The official Pandemic Unemployment Assistance website: https:/ui-cares-act.mass.gov/PUA/_/

What to do if you are a victim of unemployment fraud

• Submit a claim to the Department of Unemployment Assistance, be sure to save and/or print the confirmation page for your records.
• The Department of Unemployment Assistance will provide you with links to freeze your credit, be sure to do this with all three credit bureaus (Equifax, Experian, and TransUnion).
• Using one of the three credit bureaus listed above, place a fraud alert. You will only need to notify one of the bureaus and they will notify the other two.
• Review your credit report using all three credit bureaus, this can be done easily by going to www.annualcreditreport.com.
• Contact your local police department and file a police report. Once the police report is completed request a copy of it for your records.
• Visit www.identitytheft.gov to report the fraudulent activity to the Federal Trade Commission. After you submit a report, you will be able to develop a recovery plan on this site.
• Make major creditors, banks, the RMV, and Social Security Administration aware of the fraudulent activity and identity theft.
• Monitor your bank accounts and credit card statements.
• Change all of your online passwords.

As always, Monson Savings Bank is dedicated to helping you and your personal financing information remain protected and safe. If you are concerned your information has been compromised please contact us and we will be here to help.