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Fraud Alert for Unemployment Insurance Claims

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Fraud Alert for Unemployment Insurance Claims

  • March 5, 2021

On February 26, 2021 the U.S. Department of Justice issued a Fraud Alert for Unemployment Insurance claims after the issuance of erroneous forms 1099-G. See Issuance of Erroneous Forms 1099-G due to Fraudulent Unemployment Insurance Claims

The link provides information about fraudulent claims and links to the Office of Inspector General (OIG) and state UI offices.

Fraud has become a significant issue not only for the temporary federally funded programs (e.g. PUA, PUCA and PEUCA) but also as the volume of regular unemployment compensation claims increased due to the COVID-19 recession. Increased fraud and overpayments are now being reflected in 1099-Gs sent to individuals with amounts recorded as having been paid to the individuals that were actually claimed and paid to others through fraud.