Unemployment Fraud: How to Know If Someone Filed in Your Name
During the pandemic, criminals stole over $163 billion in unemployment benefits using stolen identities. The fraud has not stopped. Here is how to detect a fraudulent claim, report it, protect your credit, and handle the tax implications.
Warning Signs Someone Filed in Your Name
- You receive a 1099-G tax form showing unemployment income you never received
- You get mail from your state unemployment office about a claim you did not file
- Your employer notifies you that an unemployment claim was filed under your name
- You receive a debit card or payment for unemployment benefits you did not apply for
- You try to file a legitimate unemployment claim and are told one already exists
What to Do Immediately
Report to Your State Unemployment Agency
Every state has a fraud reporting portal. Search "[your state] unemployment fraud report" to find the correct form. Report that a claim was filed using your identity without your knowledge. The agency will investigate and close the fraudulent claim.
Notify Your Employer
Your employer received notice of the claim and may think you voluntarily left your job. Inform them immediately that you are still employed and the claim is fraudulent. They can contest the claim with the state agency.
File an Identity Theft Report
Report to the FTC at IdentityTheft.gov and file a police report. You will need both documents when disputing the fraudulent 1099-G with the IRS at tax time.
Place a Fraud Alert and Credit Freeze
If someone has your SSN for unemployment fraud, they likely have it for other fraud too. Place a fraud alert with one credit bureau (it propagates to all three) and consider a full credit freeze at Equifax, Experian, and TransUnion.
Handle the Tax Implications
If you receive a 1099-G for benefits you never received, do NOT include that income on your tax return. Instead, request a corrected 1099-G from your state agency. If you cannot get a corrected form before filing, report only your actual income and include a statement explaining the fraud. Keep copies of all fraud reports.
Prevention Checklist
- Freeze your credit at all three bureaus
- Monitor your credit reports weekly at AnnualCreditReport.com
- Create an account at ssa.gov to monitor your Social Security record
- Use strong, unique passwords for all financial accounts
- Enable two-factor authentication on your email and banking accounts
- Do not share your SSN unless legally required
- Shred all documents containing personal information