There are always people out there trying to scam systems to get money, and unemployment claims are not exempt. While some employees file fraudulent claims where they aren’t providing all the details in an attempt to receive benefits, there’s another illegal action that can plague employers when it comes to UI.
Recognizing Imposter Claims
Unlike fraudulent claims, imposter claims are based around identity theft. Someone or some organization will obtain some personally identifiable information, like name and social, and use that information to try and collect benefits from a company. Usually, you’ll notice the claim come in for an employee that is still currently working. When this happens, here’s what you need to do.
1. Talk to the employee
An imposter claim means you’re possibly overpaying, but it also means your employee has had his or her identity stolen. Alert them to what you noticed and ask if they have any idea what’s going on. You don’t want to accuse them but try to gather more information.
2. Advise them how to proceed
If unemployment benefits were paid, it becomes a ripple effect with the state treasuries and IRS. These payments may be reflected in income tax documents. Download the Claimant-Employer Fraud Reporting document from www.identitytheft.gov. They can also file Form 14039 with the IRS and report the activity to his or her local police station. Hopefully, these actions can correct any errors and catch the person responsible.
3. Appeal and/or Protest the charges
If it got further than a notice, you’ll want to either appeal or protest potential charges. In one scenario, you’re getting ahead of the situation and explaining why the person shouldn’t receive the payments before they do. If they’ve already received them, you must protest the claim using evidence of the imposter claim.
4. Consider credit
Depending how much was paid out, you can seek out and even request credits back into your account because of the illegal activity.
Avoid paying imposter claims
The best way to avoid overpaying or letting your employee’s identity be used for fraud is to pay attention to all your claims. Losing track when they come in can result in issues like this that cause problems for both your company and your team.
If you need help, Unemployment Tracker is here for you. Our software is designed to save you money through better monitoring and tracking, which means we’re here to help you stay on top of all your claims, so nothing slips through the cracks. Request a live demo today to learn more about our solutions!