The U.S. Department of Labor has established a one-stop resource designed to help the public connect with state websites and tip hotlines for reporting potential unemployment insurance fraud. This gateway provides direct contact information for various states to assist in reporting fraudulent activity by both employers and claimants.
Types of unemployment insurance fraud
Unemployment insurance fraud can be committed by both employers and claimants under state laws. According to the Department of Labor, employer fraud may involve actions taken to avoid tax liability or the creation of fictitious employer accounts to enable fraudulent claims.
Claimant fraud includes activities such as knowingly submitting false information, collecting benefits while ineligible, failing to report wages or income, or certifying for benefits while being unable or unavailable to work. Additionally, identity theft can result in unemployment insurance fraud even when the employer or identity theft victim is not at fault.
Consequences and penalties for fraud
States are required and expected to enforce their own unemployment insurance laws. Penalties for fraud include a mandatory assessment of at least 15% of the fraudulent payment amount. Other potential penalties under state law may involve criminal prosecution, fines, incarceration, required repayment of benefits, forfeiture of future income tax refunds, or permanent loss of eligibility for unemployment compensation.
Federal prosecution of benefit fraud
Furthermore, the commission of unemployment benefit fraud may be prosecuted in federal courts by the U.S. Department of Justice under 18 U.S.C § 1341 or other applicable federal statutes.
How Utah residents report fraud
For those in Utah looking to report potential fraud, the state provides a specific contact line for both claimant and employer fraud at 1-800-526-4400 (#4).
