Unemployment Benefits Identity Theft Scam

Criminals use stolen personal information to file fraudulent unemployment claims in a victim's name, often surfacing only when the real person receives a tax form for benefits they never applied for or received.

Using personal information stolen in prior data breaches or phishing scams, criminals file a fraudulent unemployment claim in the victim's name with a state labor agency, directing payments to a bank account or prepaid card they control. Because the application is filed remotely and states have often been overwhelmed with claim volume, the fraud usually isn't caught until the real person receives a 1099-G tax form reporting benefits income they never applied for or received, or their actual employer gets a notice about a claim filed while they were still working.

• Receiving a 1099-G tax form for unemployment benefits you never claimed.
• A notice from your state unemployment office about a claim you didn't file.
• Your employer receives a claim notice while you're still actively employed.
• Unexplained mail from unfamiliar state unemployment agencies.

• Check your credit report regularly for unfamiliar accounts or inquiries.
• If you receive an unexpected tax form for benefits you never claimed, report it to your state unemployment office immediately.
• Freeze your credit with the three major bureaus if you suspect identity theft.
• File a report with the FTC at IdentityTheft.gov if you're a victim.