Benefits & Unemployment Fraud

Government benefits are a magnet for criminals. Fraudsters file fake unemployment claims in other people's names, pose as Social Security or Medicare, and trick workers and retirees into handing over personal information or money. Knowing the signs protects your benefits and your identity.

• Workers
• Job Seekers
• Retirees
• Employers

Unemployment fraud: a claim filed in your name

• Criminals use stolen personal information (from data breaches, phishing and scams) to file fake unemployment claims in someone else's name and collect the money.
• Warning signs: a letter, email, text or debit card from your state unemployment agency when you didn't apply; a notice that you're approved or denied; a tax form (1099-G) for benefits you never got; or your employer telling you that a claim was filed on your account.
• You usually won't lose a benefit you're entitled to, but fraud can cause tax problems, delay your real claim and signal that your identity has been stolen.

If it happens to you:

1. Report it to your state unemployment agency's fraud page. Don't use the card or cash the check; follow instructions for returning it.
2. Report identity theft at IdentityTheft.gov (FTC) and file a police report if advised.
3. Put a fraud alert or freeze on your credit reports. See Credit Freeze and Identity Theft.
4. Tell your employer's HR so it can respond properly, and check your credit reports for other fraud.
5. Watch your tax records and report any wrong 1099-G to your state agency and the IRS. See Tax Scams.

Fake benefits offers and imposters

• Social Security imposters call, text or email saying your number is suspended, linked to a crime or that you owe money, and demand payment or personal information. Social Security will not threaten you or demand payment by gift card, cash, crypto or wire. See Phone Scams.
• Medicare scams: offers of free equipment, genetic tests or new cards that need your number. Medicare doesn't call to sell you things or charge for new cards. See Elder Fraud.
• “Processing fee” scams: fake agents promising faster benefits, grants, stimulus or relief payments in exchange for a fee. Real government benefits don't require a fee to apply.
• Fake unemployment or job-help sites that look like official ones but ask for your Social Security number and bank details, or charge for free services. Always find your state agency through the official .gov address. See Phishing Emails and Text Message Scams.
• Fake job offers that use “unemployment” or “training” as bait to collect your data. See Job Scams.
• Workers' compensation and disability scams: calls or messages posing as the insurer or a lawyer, asking for payment or bank info. Contact your claim adjuster using the number from your own paperwork. See Workers' Comp Claim Steps.

Protect your benefits and identity

• Don't share your Social Security number unless you started the contact and know it's official. Don't carry your card.
• Set up secure online accounts yourself: my Social Security, Medicare.gov and your state unemployment portal, with strong unique passwords and two-factor authentication. Criminals sometimes set up accounts in your name first. See Two-Factor Authentication and Strong Passwords.
• If a call or message is urgent or scary, hang up and call the agency yourself using the number on its official website or your paperwork.
• Review benefit statements, bank deposits, tax forms and Medicare summary notices for items you don't recognize.
• Use direct deposit to your own bank, and be careful with prepaid debit cards from unfamiliar sources. See Payroll & Direct Deposit Scams.
• Shred documents with your information, and watch for data breaches. See Data Breaches.
• Help older relatives: talk about these scams and set up alerts.

For employers

• Respond to unemployment claim notices promptly, and report claims for workers who still work for you as possible fraud to the state agency. Late responses may increase charges.
• Tell workers that a fake claim doesn't mean the company was hacked, but ask HR and IT to check for data exposure. Remind staff about phishing. See Small Business Cybersecurity.

Where to report

• State unemployment agency fraud line or form, and the U.S. Department of Labor Office of Inspector General for unemployment insurance fraud.
• Social Security Office of the Inspector General (OIG) at oig.ssa.gov, and Medicare at 1-800-MEDICARE.
• FTC at ReportFraud.ftc.gov and IdentityTheft.gov, and the FBI IC3 at ic3.gov. See Reporting Cybercrime.

Benefits fraud checklist

• I never pay a “fee” or give a number to someone who contacted me about benefits
• I set up my own secure benefits accounts with two-factor authentication
• I verify urgent messages by calling the agency's official number
• I report claims I didn't file to my state agency and IdentityTheft.gov
• I freeze my credit and review statements and tax forms

Last updated: October 5, 2026