Unemployment fraud is a serious issue that affects both individuals and the economy of the state of Arkansas. Fraudulent claims can take many forms, including claimant fraud, employer fraud, and identity theft.
The ADWS can detect an unemployment scam through various measures, including cross-matching databases, conducting audits and investigations, and implementing an identity verification system for claimants. By reporting suspected fraud, individuals can help protect the integrity of the unemployment insurance program and prevent financial losses for themselves and others.
How to report Arkansas unemployment fraud
You can report fraud by phone, email, or by submitting an online form.
Online: Report Fraud
Email: [email protected]
Phone: Call 501-682-1058 to speak with the ADWS Fraud Investigation Unit
When it comes to reporting unemployment fraud, every tip and report is taken seriously, regardless of how much information is provided. The more details you can provide, the better equipped the Arkansas Division of Workforce Services (ADWS) will be to investigate and take appropriate action.
By reporting unemployment fraud, you are not only helping the Arkansas unemployment insurance program, but also the economy of the state as a whole. The ADWS takes all reports seriously and will work diligently to investigate them.
What is Arkansas unemployment fraud?
There are three main types of unemployment fraud: claimant fraud, employer fraud, and identity theft.
Claimant Fraud
Claimant fraud is the most common type of unemployment fraud in Arkansas. This type of fraud occurs when an individual is collecting Arkansas unemployment benefits and working at the same time. This is against the law, as unemployment compensation is only intended for those who are unemployed and actively seeking work.
Claimant fraud can also occur when individuals falsely certify that they are available for work or lie about meeting their job search requirements. You must tell the truth and provide accurate information when filing your weekly claim.
To combat claimant fraud, the Arkansas Division of Workforce Services (ADWS) has implemented several measures to verify claimant eligibility. ADWS also encourages individuals to report suspected fraud by calling their fraud hotline or filling out a fraud report online.
Overpayments
Overpayments are often a result of fraudulent claims or unintentional errors in reporting income or work status. When overpayments occur, individuals are required to pay back the extra money.
In some cases, you may be able to request a waiver or payment plan to avoid financial hardship. It is important to report any changes in employment status or income to the ADWS to avoid overpayments.
Employer Fraud
Employer fraud is another type of unemployment fraud that can occur when employers provide false information to the ADWS in order to avoid paying unemployment insurance taxes. This includes providing false information about the reason for an employee’s separation or failing to report wages earned by employees.
Employer fraud not only harms individual workers, but it can also lead to increased taxes for other employers who are following the rules and paying their fair share of unemployment insurance taxes.
To prevent employer fraud, the ADWS conducts random audits and investigations into employer tax records. Employers found to be committing fraud may face penalties and legal action.
Identity theft
Identity theft is a growing concern for the ADWS. Criminals use stolen personal information from data breaches to file fraudulent unemployment claims, resulting in overpayments of benefits and delays in payments to legitimate claimants.
These criminals use a variety of methods to obtain stolen identities, including purchasing stolen personal information online, hacking into computer systems, using impersonation scams, and email phishing schemes.
Unfortunately, many victims are not even aware that they have been targeted until they try to file an unemployment insurance claim and are denied benefits. Sometimes, the victim may only find out when their employer notifies them that a claim has been filed in their name while they are still employed.
To address identity theft in unemployment fraud, the ADWS has implemented a new identity verification system for claimants who apply for Arkansas unemployment benefits. The department is working with law enforcement agencies to investigate and prosecute those who commit fraud.
If you suspect that someone has filed a fraudulent unemployment insurance claim in your name, you must report it right away. This will help protect your identity and prevent any further damage from occurring.
Tips for protecting yourself online
Watch out for emails that ask for personal information. One common tactic used by scammers is phishing, which involves sending emails or messages that appear to be from a trusted source, such as a bank or government agency, in an attempt to trick individuals into providing personal or financial information. Never give out your Social Security number or PIN in an email or text message.
To protect yourself from these types of schemes, it is important to be vigilant and take proactive steps to safeguard your personal information. If an email or message seems suspicious, do not click on any links or download any attachments unless you are certain of their authenticity.
Another way to protect yourself from scammers and phishing schemes is to use strong passwords and two-factor authentication. When creating passwords, use a combination of letters, numbers, and symbols to make them difficult to guess. Consider using a password manager to generate and store complex passwords for your various accounts.
Keep your software up to date to prevent vulnerabilities that could be exploited by scammers. Set your devices to automatically update when new software is available, and be cautious when downloading and installing software from unfamiliar sources. By taking these steps, you can better protect yourself from scammers and safeguard your personal information online.