| Labor Department creates site for unemployment fraud victims | | |  | WED, MAR 24, 2021 | | | | Unemployment fraud in the U.S. has reached dramatic levels during the pandemic. The Labor Department inspector general's office estimates that more than $63 billion has been paid out improperly through fraud or errors since March 2020.
This problem cuts deep for victims, who can face delays getting their legitimate benefits, are at risk for further fraud and are left to resolve much of the problem themselves. Anyone can become a target of these fraudsters, so experts say everyone should be on alert. Unfortunately, most people do not know they are a victim until the damage is done.
People typically find out about the problem when they or their employer receive unemployment benefits-related paperwork. That's what happened to me.
Just a few days ago, I got this email from the NBC human resources department: "I am reaching out because we received an unemployment claim under your name from the New York state unemployment office. We checked our HR records and you appear to be an active employee. As fraudulent unemployment claims are on the rise, we are taking extra precautions and asking you to confirm that you have applied for unemployment. If you have not applied, we will guide you through the process to report fraudulent unemployment claims. We look forward to your prompt response."
The key here was "prompt response." If this happens to you, it's important to take immediate action.
NBC's HR department immediately alerted the third-party unemployment vendor to take action. I followed the guidelines from HR and reported the incident to Federal Trade Commission by going to Identitytheft.gov. I also filed a report to the unemployment office at the New York State Department of Labor.
These scammers are very good at their jobs. They use phishing emails and other social engineering tricks to get personal information from victims.
In fact, cybercrime experts say reluctance to report these scams is the key to their continued success. If you or someone you know has been scammed, it's crucial to notify the proper authorities as soon as possible. Left unreported and unresolved, it can lead to the risk of further fraud.
On March 30, the CNBC @ Work annual summit returns. CNBC CFO Council members from Etsy, Chipotle and PepsiCo will discuss finance priorities for 2021. How is the finance function working differently as a result of the pandemic? How has the Covid-induced economy informed decisions around cost allocation? What are the investments poised to drive near-term growth? Be there.
For more key stuff like this, please follow me on Twitter @jimpavia and check out CNBC's Financial Advisor Hub and CNBC + Acorns Invest in You: Ready. Set. Grow. | |
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