The NYS Department of Labor is alerting individuals and businesses across the state to be aware of an increasing amount of fraudulent unemployment insurance (UI) claims being filed on behalf of unsuspecting individuals.
According to the Department of Labor, fraudsters use real New Yorkers’ identities — likely stolen during previous data breaches involving institutions like banks, insurance companies and major employers — to file fraudulent UI claims and illegally collect benefits in the name of individuals who are not unemployed.
Unemployment insurance fraud rings often target New Yorkers who are employed and not collecting UI benefits because those individuals are less likely to have an active claim. The presence of an active claim would prevent the criminals from filing a fraudulent claim for that same person.
People who work in health care, education, government and non-profits have been particularly impacted by UI fraud and should remain especially vigilant.