Any time an individual misrepresents information for the purposes of collecting unemployment benefits, it is fraud. Sure accidents in reporting can happen. Sometimes mistakes happen because people are uninformed or in a hurry. But sometimes people collect unemployment while knowing they are ineligible and that makes them guilty of fraud. Plain and simple.
Here are three common unemployment fraud schemes:
• Falsifying Personal Information – This occurs when a person submits a social security number or name other than his or her own, whether it is fake or stolen, to an employer or the unemployment office.
• Misrepresenting Termination – An employee who was fired for misconduct or another legitimate reason can claim they were laid off. Sometimes the unemployment office may not always call the employer to verify grounds for termination.
• Sabotaging Work Search – Anyone receiving unemployment is required to actively search for and apply to a certain number of jobs per week. The number of jobs varies by state. People intentionally manipulate their work search by applying to jobs they are not qualified for and know they will not get so they can remain on unemployment.
Don’t be a victim! What can you do?
Here are three steps employers can take to protect their company:
• Maintain Proper Documentation — Upon employment, employers should take the time to verify employee information, especially social security numbers. Keep accurate records of the status of unemployment claims. Our Unemployment Tracker software saves clients between 25% and 50% of the labor needed to manage claims manually. Never rely on paper again!
• Properly Dispose of Records – Something as simple as shredding instead of throwing away documents, such as old employee files and payroll stubs, eliminates an opportunity for someone to steal another employee’s identity.
• Document Discipline – In instances where a person is wrongfully claiming they were let go, having well-documented and dated records that show misconduct can be helpful. Unemployment Tracker could save you thousands in managing your claims.
An employer can report unemployment fraud and put an end to unjust payments through the United States Department of Labor.
Feel like you are in the dark with all of this? You’re not alone. As much as 10% of all UI claims are overpaid. But not on our watch! If you have questions or feel your company has been taken advantage of, help starts here. Contact us today.
Stay tuned for more solutions to common UI fraud!