The Indiana Department of Workforce Development warns scammers are targeting those who are filing for unemployment, seeking to steal identifying information and money.
“The whole COVID situation has kind of created a perfect storm for the scammers," said Tim Maniscalo, president of the Central Indiana Better Business Bureau. The "perfect storm" is the result of three factors — increased screen time, isolation and fear, he said.
According to a fraud alert from the Indiana Department of Workforce Development, some scammers "are sending emails using the names of companies or individuals familiar to claimants. They use familiar icons, folder names, and programs to trick claimants into providing their personal information to them."
These scam emails often contain shortened URL links. Recipients should not click on these links; instead, they should hover their cursor over the link to see its destination. Such links often send users sites that look similar to Microsoft SharePoint and require them to sign in with a Google, Microsoft, Apple, Yahoo! or other user account.
This is done to obtain usernames and passwords. From there, the scammers can access files stored online and contact lists, which they may use to send the same message to a victim’s friends and family.
"The scammers may use your personal information to collect unemployment insurance in your name or change your bank account number to one of their own," the alert warned.
Uplink, the real online filing system for unemployment in Indiana does not require claimants to sign into its system with a secondary account.
Individuals should also be wary of anyone offering to help them file for unemployment. According to a fraud alert from the Office of Inspector General at the U.S. Department of Labor, some scammers offer such services and then ask for personal information including Social Security numbers or dates of birth.
"The scammers may ask you to provide payment, or your credit card information, in assisting you in filing or qualifying for your unemployment benefits," the alert stated. "You do not need to pay anyone to file or qualify for your benefits."
Scammers may use the provided information to commit identity theft and file fraudulent unemployment insurance claims.
The department said that these scams may take place through unsolicited calls, over social media or even through door-to-door visits.
"Never give out personal information to anyone who contacts you unsolicited, regardless, if they claim to be law enforcement or a government official," said Lt. Matt Harris, Columbus Police Department spokesman. "Hang up the phone, look up the phone number, and contact them yourself."
According to the Federal Trade Commission (FTC), when scammers steal a person’s information to receive unemployment benefits, the payments are often deposited to the scammer’s accounts. However, sometimes the payments are sent to the victim’s account.
"If this happens to you, the imposters may call, text, or email to try to get you to send some or all of the money to them," federal officials said. "They may pretend to be your state unemployment agency and say the money was sent by mistake. This a money mule scam and participating in one could cause you more difficulties."
If individuals receive benefits they never applied for, they should report the problem to their state unemployment agency and ask for instructions. They should not respond to messages of any kind that ask them to wire money, send cash or put money on gift cards.
"Your state agency will never tell you to repay money that way," federal officials said. "Anyone who tells you to do those things is a scammer. Every time."
Maniscalo said that official government agencies typically contact individuals through letters, not phone calls, and agreed that a real agency wouldn’t ask for a money wire to settle a mistake.
The U.S. Department of Labor warns that identity theft isn’t the only type of unemployment fraud that can occur. There is also employer fraud and claimant fraud.
The department’s site states that, "Employer fraud can include certain actions to avoid tax liability or establishing a fictitious employer account to enable fraudulent claims against that account. Claimant fraud can include knowingly submitting false information; continuing to collect benefits when knowing oneself to be ineligible; not being able and available to work while certifying for benefits under state law; or intentionally not reporting wages or income while collecting full benefits."
According to a document from the Indiana Department of Workforce Development, convicted fraudsters "must meet several requirements in order to be eligible for benefits in the future, including complete repayment of any benefits received that were deemed fraudulent."
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To report an allegation of fraud involving unemployment, you can:
- Visit the state’s fraud reporting webpage at Unemployment.IN.gov and click on “Report Unemployment Fraud.”
- Contact the Office of Inspector General Hotline at: oig.dol.gov/hotline.htm or 202-693-6999 or 1-800-347-3756.
- Visit IdentityTheft.gov to report fraud to the Federal Trade Commission and get help with recovery steps.
- Report claimant fraud in Indiana by calling 1-800-891-6499.
- Report employer fraud in Indiana by calling 1-800-437-9136.
- Report a potential scam to the Better Business Bureau’s Scam Tracker by filling out a form at bbb.org/scamtracker/reportscam.
The FTC also advises identity theft and unemployment fraud victims to:
- Report the fraud to your employer. Keep a record of who you spoke with and when.
- Report the fraud to your state unemployment benefits agency. (For Indiana, this is the Department of Workfoce Development)
- If possible, report the fraud online. An online report will save you time and be easier for the agency to process.
- Keep any confirmation or case number you get. If you speak with anyone, keep a record of who you spoke with and when.
- Review your credit reports often. Through April of 2021 you can check your reports every week for free through AnnualCreditReport.com.
- To sign up for Fraud Alerts from the Indiana Attorney General’s Office, visit in.gov/attorneygeneral/2475.htm. The site can also help you enact a credit freeze and report identity theft.
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