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Warning Signs of Fraudulent Unemployment Compensation Claims

Most Pennsylvania employers received an email from the Department of Labor & Industry this morning, June 25, 2021, regarding fraudulent unemployment compensation claims. We want to reiterate that it is extremely important to review all unemployment compensation claims you receive.

Increase in Fraudulent Unemployment Claims 

In November 2020, the Office of the Inspector General of the Department of Labor estimated at least $36 billion in fraudulent unemployment compensation claim payments were taken by scammers; and the fraudulent claims have continued into 2021. 

Unemployment Compensation Fraud in Pennsylvania 

The email from the Department of Labor & Industry provided warning signs to look for that may indicate that a fraudulent unemployment compensation claim was filed involving you or your company, including: 

  • You receive paperwork/notice for an employee who never worked for you. We hear employers say: “I don’t know why this person would have entered me as their employer. I never heard of this person.” The answer is: because it probably wasn’t a person. It was probably a robot filing multiple claims at a time and choosing random Pennsylvania employers. Mark “Never worked here” on the form and send it back per the enclosed instructions.
  • You receive paperwork/notice for an employee who is fully employed by you. Talk to the employee to ask if he/she opened a claim. Most times, they have no idea this is happening and are unaware that their identity is being used by a fraudster. If they did not file the unemployment claim, instruct the employee to report the fraud the UC website. You may also complete the forms over the phone by calling the PA UC Fraud Hotline at 800-692-7469.
  • You receive paperwork for yourself. Your identity was stolen and you should report the fraud using the appropriate method as mentioned, above.

The above information and links may also be accessed via the Pennsylvania Office of Unemployment Compensation website.

UC Fraud is Nationwide

Keep in mind, UC fraud is not limited to Pennsylvania. All states are having similar experiences. 

To file a fraud report in New Jersey, please click here

For all other states, please click here.


Should you have questions about this topic, or any other topics related to your personal or business situation, please contact us at any time.

DISCLAIMER: The WM Update, WM Wednesday Wisdom, WM Daily Update COVID-19, COVID-19 Business Resources, COVID-19 Client News Alerts and other related communications are intended to provide general information, including information regarding legislative COVID-19 relief measures, as of the date of this communication and may reference information from reputable sources. Although our firm has made every reasonable effort to ensure that the information provided is accurate, we make no warranties, expressed or implied, on the information provided. As legislative efforts are still ongoing, we expect that there may be additional guidance and clarification from regulators that may modify some of the provisions in this communication. Some of those modifications may be significant. As such, be aware that this is not a comprehensive analysis of the subject matter covered and is not intended to provide specific recommendations to you or your business with respect to the matters addressed.