In 2009 and 2013, Nevada passed laws that gave a clear definition of Nevada unemployment insurance fraud. These laws created serious punishments for those who commit fraud, including fines and other penalties. Additionally, the state created new ways to collect money from people who received benefits due to fraudulent activities, and who refuse to repay them voluntarily.
Unemployment fraud is a serious crime in Nevada and can result in a felony charge.
How to report Nevada unemployment insurance fraud
To report unemployment fraud, the Nevada Department of Employment, Training, and Rehabilitation asks informants to get in touch with its fraud investigation unit by calling (775) 684-0475 and selecting option 4. Alternatively, you can submit a tip on the division’s website by visiting detr.nv.gov/page/unemployment_fraud.
After submitting a report, you are not required to take any further action. The unemployment division will mark the account to prevent payments from being issued. If more information is needed, the division may reach out to you. All information shared will be kept confidential.
What constitutes unemployment fraud?
Unemployment fraud refers to any intentional and illegal activity aimed at obtaining unemployment benefits through deceitful means. It may involve providing false or misleading information to the unemployment agency, such as misrepresenting employment history, income, or eligibility requirements, or failing to report income while receiving benefits.
Unemployment fraud can also occur when someone continues to collect benefits after returning to work or misuses their benefits in some other way. It is a serious offense and can result in criminal charges, fines, and imprisonment.
Examples of fraudulent activity include:
- Not reporting all work and earnings each week
- Pretending to look for work when you’re not
- Refusing a suitable job offer
- Receiving benefits when you are unable or unavailable for full time work
- Filing for unemployment benefits while incarcerated
- Using a name and Social Security number other than your own to file an unemployment claim
Penalties for committing UI fraud in Nevada
Knowingly making false statements or failing to provide required information for obtaining benefits is a prosecutable offense, and depending on the severity of the fraud, you may serve prison time.
Committing fraud will, at the very least, result in disqualification from benefits until all money owed, including penalties and interest, is repaid.
The Nevada Employment Security Division is authorized to:
- Seize federal income tax refunds
- Garnish paychecks
- Pursue criminal charges for felony theft
Can a claim be edited after submission?
When filling out the initial application and weekly claims, you will see a “Summary” screen before you’re given the option to submit. It is important to review the information you input carefully.
If you later notice that some of the information was incorrect, you will need to contact the Nevada UI claims center that serves your area.
What is an overpayment?
If a person receives an improper payment for benefits they are not eligible for, it is considered an overpayment and must be repaid.
Overpayments can occur for many reasons, including:
- You didn’t accurately report your earnings
- The reason for your separation was inaccurate
- You don’t meet the basic eligibility criteria
- An appeal led to a reversal of the initial determination
If it is determined that an overpayment occurred, you will receive an Overpayment Notice with instructions on how to repay the benefits or appeal the overpayment. You can use the Nevada unemployment calculator to estimate your weekly payment and avoid overpayments.
Can I get my overpayment waived?
It is possible for individuals who have made an overpayment to request a waiver. However, these waiver requests are not evaluated until the entire appeals process has been completed. If the appeals process has concluded and a decision has been made that you are responsible for the overpayment, your waiver request will not be considered.
To qualify for a waiver, claimants must demonstrate that repaying the debt would cause them significant hardship. This type of hardship is defined as the loss or inability to maintain basic necessities such as food, shelter, and medicine. In assessing financial hardship, the division will take into account the entire household’s income.
What happens if I don’t repay the overpayment?
If you do not repay the overpayment and do not go through the appeals process, then the Nevada government can confiscate your federal income tax return, garnish your wages, or even put a lien on your property until it is repaid.
If you went through the appeals or waiver process and were unsuccessful, you can contact the division to set up a payment plan.
How does Nevada detect unemployment fraud?
The names and Social Security numbers of newly hired employees are reported by employers, and the Nevada Employment Security Division’s computer system compares this data with benefit payments. Whenever there is an indication that an individual worked during the same period they applied for unemployment benefits, the division conducts an investigation. Additionally, the division checks the validity of job search activities, work separations, and school attendance.
To prevent a fraudulent unemployment claim caused by identity theft, the unemployment division will require you to go through an identity verification process by requesting personal identification information. This information is then cross-referenced with records held by other government agencies such as the Department of Motor Vehicles and the Social Security Administration, in order to verify the claimant’s identity.
Unemployment Identity Theft
Unemployment identity fraud occurs when someone uses another person’s identity information to fraudulently apply for and receive unemployment insurance benefits. This type of fraud can happen in various ways, such as stealing personal information through data breaches, phishing scams, or by stealing physical documents, like driver’s licenses or Social Security cards.
The perpetrator then uses this information to file a claim for unemployment benefits in the victim’s name. The fraudulent application is typically approved, and the funds are paid out to the perpetrator, who may withdraw the money or use it for personal expenses. Meanwhile, the victim may not be aware that their identity has been compromised until they receive a notice of benefits they never applied for or until they try to file a legitimate claim for unemployment benefits and are denied because fraudulent unemployment insurance claims have already been filed in their name.
Unemployment identity fraud can cause financial harm to the victim, who may face tax consequences or difficulty obtaining legitimate unemployment benefits. It can also result in losses for the government and taxpayers who fund UI benefits programs.
How to protect your personal information
It’s important to protect yourself against unemployment scams. You can do so by:
- Never disclose personal information via email or text message
- Avoid wiring money
- Do not respond to unsolicited messages
- Carefully review all financial statements for unusual activity and promptly contact the company if you notice anything suspicious
- Make sure credit card statements, bills, and bank statements are properly shredded.
- Avoid carrying your Social Security card in your wallet
- Only release your Social Security number when absolutely necessary or when required by law
- Be wary of callers seeking to confirm personal or financial information
- Check credit reports, banking, and medical information for any data that should be secured or removed
- Update your passwords regularly and use complex combinations that are not easily guessed by potential thieves
- Memorize your passwords and PINS
- Eliminate old accounts and passwords that are no longer in use
- Whenever possible, use additional security measures offered by your accounts
- When contacting a state agency, such as the Nevada Department of Employment, Training and Rehabilitation, be sure to verify that you are dealing with official state representatives and not scammers attempting to exploit your vulnerability