For Immediate Release: April 22, 2021
ADOL Encourages Alabamians to Protect Information, Report Unemployment Fraud
MONTGOMERY – Alabama, like most states across the country, has been experiencing an increase in recent fraudulent activity related to unemployment insurance. This includes claims filed using stolen identities or unauthorized access to an individual’s account, as well as computer-generated claims from a single employer that exceeds the number of employees, or claims filed on behalf of employees that never worked at the business they are being filed against. Unemployment insurance fraud is a national issue, and ADOL is working closely with the U.S. Department of Labor, the National Association of State Workforce Agencies, state and federal law enforcement agencies, and other states around the country to share information regarding known bad actors or methods of attack.
It’s important to note that ADOL has not been compromised and personal information is not being obtained via the agency. Criminal organizations are using highly sophisticated algorithms and programs to attack states’ unemployment systems. Fraudsters are obtaining identity information from many sources, such as from fraudulent phishing scams or recent large-scale private sector breaches that included private information from millions of individuals. Social media and text scams have also been used to obtain information as fraudsters portray themselves as agents of ADOL.
ADOL is constantly developing new technology and methods to combat fraud and to prevent it from happening. This week, ADOL will roll out a new sign-on system designed to protect claimants’ identities. It will allow users to login using existing global provider sign-in information from Google, Apple, and Microsoft, and will provide a dual-authentication login.
ADOL is encouraging claimants to protect their personal information, sign-in credentials and passwords. Establish PIN and passwords that are difficult for an outside person or computer to generate (for example, avoid using the last four digits of your social security number or date of birth).
Please be on the lookout for any suspicious activity related to unemployment claims. Indicators of fraudulent activity can include:
• Mail from ADOL notifying you of a claim in your name when you have not filed an unemployment insurance claim.
• A 1099-G from ADOL stating you have income from unemployment insurance when you have not filed for or received unemployment insurance during the last calendar year.
• Text messages from ADOL asking you to verify your account. ADOL does not communicate via text message.
• Employers receiving claims notices on employees that do not exist, or never left the job.
• Anything you may suspect as fraudulent banking activity.
If you suspect fraudulent activity, please report it to ADOL via the website at www.labor.alabama.gov.
Additional information is available online from the United States Department of Labor.
Members of the media seeking more information should contact Communications Director Tara Hutchison.
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