Be Wary of Unemployment Scams

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Be Wary of Unemployment Scams

Seasons of vulnerability and increased market volatility are a prime time for scammers on the hunt for victims. Unfortunately, there are two newly arising scams that you should know about, both related to unemployment benefits.

The first scam results in the opening of false unemployment claims under an employee’s name and social security number. You may be unaware that a claim was even filed until you receive communication from the state unemployment office, which means that a scammer is using your personal information. If you are contacted about a claim you didn’t file, or you receive an unexpected unemployment payment, you’ll need to act fast to secure your personal information.

The funds are often deposited into the scammer’s account, but occasionally, they may end up in yours—and you may be contacted by the scammer. If you receive an unexpected payment, contact your state’s unemployment office to report the incident, and do not respond to any texts or emails asking you to transfer the funds to another account.

The second scam involves a phishing email appearing to be from the US Dept of Labor or Unemployment Insurance, stating that bank information was updated and inviting the recipient to log in to confirm. The email will appear legitimate, but the log-in link provided is not authentic. Upon log-in, the banking information is stolen.

If you or your employees receive communication like this, do not click on any links in these emails. Instead, open a new browser window, type the real URL in yourself, log into the State Employment website, and check the account for accuracy. If a worker does fall victim to an unemployment scam, it should be reported to, a website managed by the Federal Trade Commission. Then, a report should be filed with the local police department. Finally, the scam should be reported to the state in which the incident occurred.

If the incident occurred in Pennsylvania, click here to report the fraud. For Florida, click here. For New York, click here. For a full list of all state links, please click here.

Faithward Advisors is honored to assist your organization with employee education, benefit strategies, and more. Please let us know if we can be of assistance, and we’ll do our best to stay vigilant so you can avoid traps like this.


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