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An Employer’s Role in Reporting Suspected Fraudulent Claims BY KARRYL HUBBARD
As Federal Pandemic Unemployment Benefits begin to phase out this fall, the Delaware Department of Labor’s Division of Unemployment Insurance (DUI), and unemployment insurance agencies across the country have experienced a marked increase in the number fraudulent claim attempts. In response, we are focused on enhancing our systems and processes to help combat these sophisticated fraud attempts. To do that, we need both the business community and the public’s help to thwart the highly organized groups of criminals determined to steal money that rightfully belongs to those who are unemployed through no fault of their own and those independent contractors who became eligible for Pandemic Unemployment Assistance due to COVID-19. Since April of this year, a number of Delaware businesses have contacted DOL regarding letters they’ve received about unemployment claims made by people who either have never been employed
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with the company or those who left the company’s employ years ago. If you received such a letter, you are not alone. We have had calls from hundreds of employers facing the same claims. As of July 20, DOL has identified 25,149 cases of suspected fraud claims due to identity theft since the beginning of the pandemic. In response to the high volume of calls our Fraud Unit is receiving, we implemented a process for employers to follow in reporting these incidents. When a claimant files an initial claim for benefits, they provide information on where they last worked. Based on that information, a notice to the employer is generated. That notice is the first time employers can determine if a former employee has either misrepresented their issue (e.g., reason for separation) or if someone has a fraudulent claim using that employers name. The employer’s role in reporting suspected fraudulent claims is critical. Please do not ignore these notices as there are potentially negative impacts
to an employer’s taxes. The best way to avoid fraudulent activity being charged against an employer’s account is to have employers take the following measures to help shut down the fraudulent activity: Communicate with DOL’s Fraud Investigation team at BPC_Fraud_Unit@ delaware.gov or call the UI Fraud Hotline at 302-761-8397. When reporting fraud, the employer should provide the following: • the alleged employee’s full name • the employee’s mailing address • the best contact information for the employer and the employee • the last four digits of the employee’s social security number If the employee is still employed with the business, encourage the employee to file a police report and log onto https://www.identitytheft.gov/ Unemploymentinsurance For more information about UI Fraud, go the DOL’s website: https://labor.delaware. gov/divisions/unemployment-insurance/ The increase in attempted unemployment insurance fraud is not
Se p t e m b er / Oc t o b e r 2021 | DELAWARE BUSINESS
