It was probably only a matter of time before criminals began to sniff out opportunities to exploit unemployed workers as they apply for their regular and federally enhanced unemployment insurance (UI) benefits.

Individual UI claimants and their employers need to be aware that UI claimant personal information may be used fraudulently. The US Department of Labor reported that it is being alerted to actions by fraudsters to perpetuate numerous schemes related to the COVID-19 pandemic.

In one reported scheme, scammers have offered to help individuals file claims for unemployment benefits. The scammers then ask for personal information, including social security numbers and dates of birth. The scammers may ask the UI claimant to provide payment, or credit-card information, in allegedly assisting him or her to file for unemployment insurance benefits.

The activity is obviously fraudulent – there is never a fee for an individual to file for unemployment insurance. And the Massachusetts Department of Unemployment Assistance (DUA) publishes guidance on how an individual should apply for unemployment. No individual needs to pay any third party to file or qualify for benefits.

The victims of these scams face potential harm well beyond the disruption in their ability to collect UI benefits. The personal information the scammers collect may be used to commit identity theft and otherwise damage an individual’s credit rating and overall financial future.

The Department of Labor reports that scammers have used unsolicited calls, social media platforms, and door-to-door visits to target UI claimants.

Employers and individuals claiming UI benefits who believe that someone is being victimized regarding unemployment insurance fraud or other related activities, is urged to report the incendent to the Office of Inspector General (OIG) Hotline at: https://www.oig.dol.gov/hotline.htm or 202-693-6999 or 1-800-347-3756.

Employers may want to consider sharing this information with employees who are or have been furloughed or laid off to minimize the risk of any of them being victimized.

Members with questions about this or any other HR issues may call the AIM Employer Hotline at 1-800-470-6277.