SCAM INVOLVING FRAUDULENT UNEMPLOYMENT BENEFITS
A large-scale scam involving fraudulent unemployment benefits claims has been reported to the Jefferson County Sheriff's Office. Criminals not yet identified are filing claims for benefits using the name and personal information of individuals who are not unemployed.
Victims are generally alerted of the fraud when their employer receives notice from the unemployment office within its respective state that one of its employees has filed for unemployment benefits. At this point, benefits have usually been paid to an account controlled by the criminal.
Investigations are imminent, as this fraud is affecting many, both locally and nationally. This fraud also delays the delivery of benefits to residents with legitimate claims and costs states like Arkansas.
Here are steps you can take to help your business respond quickly to any phony claims and assist employees whose personal information has been misused.
- Alert your workforce. Tell your employees about the scam. Ask them to report fraudulent benefits claims to your Human Resources (HR) department as soon as they learn about them. Direct your HR team to flag any notice they get from the state about a claim supposedly filed by a current employee. Immediately notify the employee about any suspicious claim that your business receives.
- Report the fraud. It is important to remain vigilant and immediately report any suspicious activity related to unemployment claims. If you receive a letter or debit card in the mail for unemployment benefits and you did not file for unemployment, or if you suspect someone has fraudulently filed for benefits using your name or any of your information, you need to report this to ADWS immediately!
Ways to Report Fraud to ADWS:
- Send an email to ADWS.InternalAudit@arkansas.gov.
- Call 501-682-1058 to speak with the ADWS Fraud Investigation Unit. If the line is busy, leave a message.
- Visit the ADWS website and fill out the secure fraud reporting form.
ADWS will protect your identity. All tips received are investigated regardless of how much information is provided. However, the more details you can provide, the more you will aid in the investigation. After you submit the fraud reporting form, ADWS' Fraud Investigation Unit will take appropriate action, including freezing the account associated with the report. If any payments were made, they will not be recognized as income to you at the end of the calendar year. Additionally, the fraudulent claim will not impact your ability to collect unemployment should you need to in the future and no charges will be assessed to your employer.
File a Police Report File a police report with your local police department. Be sure to get a copy of the report and provide it to ADWS by sending it via email to ADWS.InternalAudit@arkansas.gov or presenting it at your local Arkansas Workforce Center.
- If possible, report the fraud online. An online report will save you time and be easier for the agency to process.
- Give your employee a copy of any documentation of your report to the state, including any confirmation or case number you receive. Let the employee know if the state requires that the employee also report the fraud.
How to Safeguard Your Information
If you believe your identity has been stolen and a fraudulent unemployment claim has been filed on your behalf, here are some steps you can take to protect yourself:
- Change passwords on your email, banking, and other personal accounts.
- Make a list of credit card companies, banks, and other financial institutions where you do business. Tell them you are a victim of identity theft and ask them to put a fraud alert on your account.
- Get a copy of your credit report and dispute any fraudulent transactions. You can request credit reports online from the major credit reporting agencies (Equifax, Experian, and Transunion) or by calling (877) 322-8228.
- Place a credit freeze with each of the 3 major credit reporting agencies. Call each of the credit reporting agencies at these phone numbers or visit their websites to freeze your credit. - Equifax: 800-349-9960 or freeze your credit online - Experian: 888-397-3742 or freeze your credit online - TransUnion: 888-909-8872 or freeze your credit online
- Place a fraud alert on your credit file. You can do this by contacting just 1 of the credit agencies to add an alert with all 3 agencies.
- Take notes about all conversations and keep copies of all records.
- Visit the Arkansas Attorney General's website to learn more about how to protect your credit.
- The Arkansas Attorney General's office has information about reporting identity theft and protecting yourself.
- The Federal Trade Commission has a step-by-step guide on how to report identity theft and create a recovery plan.
- If you believe someone has filed unemployment insurance in your name, you need to report it immediately. Learn more here: Is a scammer getting unemployment benefits in your name?