Reporting unemployment fraud and preventing identity theft are critical aspects of safeguarding Washington’s unemployment insurance program. Unemployment fraud occurs when people falsely claim benefits using stolen identities or providing misleading information.
Recognizing the impact of such fraudulent activities, authorities in Washington have made it easy to report unemployment fraud to help protect Washington residents from identity theft.
How to report Washington unemployment insurance fraud
If you suspect someone is committing unemployment insurance fraud, there are three ways to report it to the Washington Employment Security Department’s Office of Special Investigations.
The easiest way is to fill out the department’s online form, but you can also call the unemployment fraud hotline. Finally, you can fax a report to 360-902-9771.
When filing a report, you will need to supply the following information:
- Your full name
- Your Social Security number
- Your address
- Your date of birth
If you are reporting a case of identity theft, you will also need to:
- Explain how you discovered that someone filed a fraudulent unemployment claim using your information
- Indicate whether you authorize the department to deny and cancel the fraudulent claim filed with your information.
What constitutes unemployment fraud?
Unemployment fraud occurs when people intentionally and unlawfully try to receive unemployment benefits through deceptive methods. This can involve giving false or misleading information to the unemployment agency, such as lying about work history, income, or meeting eligibility criteria.
Examples of unemployment fraud in Washington state include:
- Identity Theft—When someone uses stolen personal information, such as Social Security numbers or addresses, to fraudulently file for unemployment benefits under another person’s name.
- False Claims—Individuals intentionally provide inaccurate or misleading information on their unemployment applications to obtain benefits they are not entitled to.
- Continuing to Claim While Employed—Claimants who fail to report employment or underreport their earnings while continuing to claim unemployment benefits, knowingly deceiving the system.
- Failure to Meet Eligibility Requirements—Individuals who do not meet the necessary criteria for receiving unemployment benefits, yet still file claims and collect payments.
- Fictitious Employers—Fraudsters create fake businesses or use the names of legitimate companies to file claims on behalf of fictional employees, diverting funds for personal gain.
- Fraudulent Reporting—Providing false information regarding job search activities or work availability to maintain eligibility for benefits.
It is important to note that these are just examples, and unemployment fraud can take various forms.
Penalties for committing UI fraud in Washington
If you knowingly break the rules and commit unemployment fraud, you may be denied benefits and face serious consequences. These consequences include paying back the money you received with additional penalties and fines, losing eligibility for future benefits, and being subject to legal prosecution.
For a first violation, you will be denied benefits for 26 weeks and required to repay the unemployment compensation with a 15 percent penalty.
A second violation will result in being denied benefits for 52 weeks and facing a 25 percent penalty.
For third and subsequent violations, benefits may be denied for 104 weeks with a 50 percent penalty.
Committing further fraud may lead to prosecution and possible jail or prison time.
What happens if I accidentally submit an incorrect claim?
When applying for UI benefits, it is crucial to provide accurate and complete information. If you make a mistake in your application or weekly claim, it’s important to contact the Washington Employment Services Department immediately. You can do so by sending a message through your SecureAccess Washington eServices portal or by calling the UI claims center. This will ensure that you receive the correct amount of weekly benefits and avoids potential problems in the future.
What is an overpayment?
When someone receives unemployment benefits they later turn out to be ineligible for, it results in what is known as an overpayment. There are two main reasons why an overpayment occurs.
The first is if you were initially paid benefits while your claim was going through a review or appeal, but were later found to be ineligible. You will need to repay all the benefits you previously received.
The second reason is if you fail to respond to the department’s requests for information within a 10-day period. If you miss the deadline, they will stop additional payments, issue a denial of benefits, and send an overpayment notice. However, if you appeal the decision and provide the requested information, the overpayment may be overturned if you are found to be eligible for benefits.
Can I get my overpayment waived?
If you believe an overpayment was made in error, you can appeal the decision by following the instructions in the Overpayment Assessment sent to you. Your case will be heard by a judge, who will issue a ruling on whether the overpayment was accurate.
What happens if I don’t repay the overpayment?
If you fail to repay the overpayment and do not appeal it, the Washington state government has the authority to seize your federal income tax return, garnish your wages, or place a lien on your property until the entire amount is repaid.
If you attempted to appeal the overpayment but were unsuccessful, you can contact the Washington UI collections unit to arrange a payment plan and gradually repay the amount owed, so long as the overpayment was not the result of fraudulent activities.
How does Washington detect unemployment fraud?
The Washington Employment Security Department uses a variety of methods to detect and prevent fraud, including:
- Comparing the income reported by employees with the information provided by their employers.
- Conducting audits to review and verify claims.
- Checking earnings reported not only in Washington but also in other states.
- Referring to the National Directory of New Hires to ensure that individuals are not receiving unemployment benefits while working.
- Verifying job search activities and contacts.
- Conducting investigations based on tips or reports of potential fraud.
- Confirming the accuracy of information by cross-matching it with data from state and federal databases.
- Validating unemployment separation reasons provided by claimants.
Unemployment Identity Theft
Unemployment identity theft occurs when someone fraudulently uses another person’s personal information, such as their Social Security number and name, to apply for and receive unemployment benefits.
Victims of unemployment identity theft may become aware of the situation when they receive unexpected communication from the Washington Employment Security Department regarding an unemployment claim they did not file. They may also notice unexplained reductions in their legitimate unemployment benefits, receive unfamiliar tax forms related to unemployment, or receive notice of income they did not earn.
How to protect yourself from unemployment fraud
If you suspect you are a victim of unemployment identity theft, you should report the incident immediately to the Washington Office of Special Investigations and take steps to protect your personal information, such as monitoring credit reports, notifying relevant financial institutions, and filing a report with law enforcement.
Here are some tips that can help you stay safe:
- Be cautious about sharing personal information on social media platforms like Facebook, Twitter, LinkedIn, or Instagram. An identity thief may create fake pages that appear legitimate and trick you into providing private details.
- Avoid sharing sensitive information, such as credit card or bank account numbers online. The department will only ask for your full Social Security number through secure channels, like phone calls or its eServices platform, but if you’re uncomfortable providing it over the phone, the claims agent can accept the last 4 digits, along with other identifying information.
- Avoid sharing medical information. The department won’t ask for specific medical information, so be cautious if someone asks about the status of a medical issue without disclosing personal details.
- If you receive a phone call asking for information that the department hasn’t requested through official correspondence or eServices, hang up and send the information through secure channels.
- Protect your account login and password for the eServices platform.
- Be cautious of false websites and only use official websites for reliable information and services. The official websites to access the Washington Employment Security Department are wa.gov and eServices at secure.esd.wa.gov.
- Be aware of known scams. You can find examples and explanations provided by the Office of Inspector General, U.S. Department of Labor. Remember, applying for unemployment benefits is free, and the Employment Services Department will never ask for payment to process your claim.
- Some suggest creating an eServices account even if you don’t need one to prevent someone else from using your name to create an account. However, it’s unclear if this measure effectively prevents fraud, so the department neither encourages it nor discourages it.
- While the Washington Employment Security Department occasionally sends text reminders, they never ask for personal information via text. If you’re unsure about a text’s authenticity, avoid clicking any links and instead access your eServices account directly. Any critical information will also be sent to your eServices account.
- If you receive a call, you can ask the agents to identify themselves or request that they send a message through eServices to verify their affiliation with the Washington Employment Security Department. If you’re unsure about any phone requests, it’s best to hang up and send the requested information through the eServices portal.