Best practices for identifying, combating unemployment fraud

After dealing with the COVID-19 pandemic for more than a year, we've seen a meteoric rise in unemployment compensation claims. As new jobless benefits programs come into play, fraud has become major problem, with cost estimates ranging in the hundreds of billions of dollars. So how can you and your company and employees prevent and respond to potential unemployment fraud?

Recognizing fraud's red flags

Unexpected communications. If you or your employee receives communications from an unemployment agency (e.g., the New Hampshire Department of Employment Security or the Massachusetts Department of Unemployment Assistance) that you aren't expecting, don't disregard it as junk. Instead, take the time to review and report it if it's potentially fraudulent. Some red flags include (1) the name on the notice is slightly misspelled, (2) the Social Security number is off, or (3) the notice uses a previous legal name.

Unauthorized transactions. Unauthorized transactions on your accounts (personal or business) can relate to fraudulent unemployment benefits. Make sure you and your employees develop a habit of frequently and consistently checking your accounts and credit cards. In this age of information, it can be easy to forget about an account. If possible, enable push or e-mail notifications for when (1) credit cards are used or (2) money is withdrawn or deposited in your accounts. That way, you'll receive instant notice if a fraudulent transaction has been made.