Criminal Actors Use Stolen Identities to File Unemployment Insurance Claims
Since the outbreak of the ongoing COVID-19 pandemic, the FBI has seen a high rise in fraudulent unemployment insurance claims involving the use of stolen personally identifiable information (PII).
U.S. citizens from several states across the country have had their identities stolen by criminal actors. These criminals use a stolen identity to submit fraudulent unemployment insurance claims online and then use third parties or persuade individuals who are victims of other scams or frauds to transfer the funds. They obtain the stolen identity using a variety of techniques, including computer intrusions, online purchase of stolen PII, previous data breaches, physical theft of data from individuals or third parties, email phishing schemes, impersonation scams and information obtained through public websites and social media accounts, among other methods.
Many of these victims do not know they have been targeted until they try to file a claim for unemployment insurance benefits, or they receive a notification from the state unemployment insurance agency. Sometimes victims will only realize after they receive an IRS Form 1099-G showing the benefits collected from unemployment insurance or the victims employer notifies them that a claim has been filed while they are still employed.
The FBI advises the public to be on the lookout for the following suspicious activities:
Receiving communications regarding unemployment insurance forms when you have not applied for unemployment benefits
Unauthorized transactions on your bank or credit card statements related to unemployment benefits
Any fees involved in filing or qualifying for unemployment insurance
Unsolicited inquires related to unemployment benefits
Fictitious websites and social media pages mimicking those of government agencies
Tips on how to protect yourself:
Be wary of telephone calls and text messages, letters, websites, or emails that require you to provide your personal information or other sensitive information, especially birth dates and Social Security numbers. Be cautious with attachments and embedded links within email, especially from an unknown email sender.
Make yourself aware of methods fraudsters are using to obtain PII and how to combat them by following security tips issued by the Cybersecurity and Infrastructure Security Agency, including:
Avoiding Social Engineering and Phishing Attacks
Protecting Against Malicious Code
Preventing and Responding to Identity Theft
Monitor your bank accounts on a regular basis and request your credit report at least once a year to look for any fraudulent activity. If you believe you are a victim, review your credit report more frequently.
Immediately report unauthorized transactions to your financial institution or credit card provider.
If you suspect you are a victim, immediately contact the three major credit bureaus to place a fraud alert on your credit records. Additionally, notify the Internal Revenue Service by filing an Identity Theft Affidavit (IRS Form 14039) through irs.gov or identitytheft.gov
If you believe you have been a victim of identity theft related to fraudulent unemployment insurance claims, report the fraud to law enforcement, state unemployment insurance agencies, the IRS, credit bureaus, and your employer’s human resources department. The FBI encourages victims to report fraudulent or any suspicious activities to the Internet Crime Complaint Center at ic3.gov. You may consult identitytheft.gov for help in reporting and recovering from identity theft.