SCAMS BULLETIN Host Jay White is a volunteer attorney who provides free legal services for low income seniors in San Mateo County, California.

June 6, 2020

UNEMPLOYMENT CHECK SCAM

Criminals are working to siphon off unemployment insurance payments intended for workers laid off due to the COVID-19 pandemic.

How the scam works:

Identity thieves use databases of personal information (likely obtained via data breaches) to create phony accounts on state unemployment insurance office websites. Once they successfully create an account, they have the benefits direct deposited into a bank account controlled by the scammer or an accomplice. The scammer then uses the deposited funds to purchase untraceable bitcoins, gift cards, or money orders.

If you have recently become unemployed, the following steps can help you reduce your risk of becoming a victim of this scam:

Log on and create a profile on your state unemployment office’s website as soon as you are laid off. This will reduce the window of opportunity for scammers to create fake profiles in your name and steal your unemployment benefits.

If you have already created a profile with your state unemployment office, log in and verify that no one has filed a claim in your name. If you have used a password on your profile that you have used on other accounts, change your password to something unique that you have not already used elsewhere.

If you receive communication that someone else has applied for unemployment benefits in your name, or your unemployment benefits claim was denied because someone else already applied, file a fraud complaint with your state’s unemployment office promptly.

You can place a credit freeze on your credit report with the three major credit reporting bureaus (Experian, Equifax, and TransUnion). If identity thieves have the personal information necessary to steal your unemployment benefits, they likely also have the information they need to take out credit or engage in other criminal activity. A credit freeze will prevent anyone from accessing your credit file until you unfreeze it with a PIN. For more information on credit freezes, refer to FAQ from the US Federal Trade Commission: http://www.ftc.gov.

Work from Home Schemes

If you are looking for work, beware of online ads or unsolicited email and text offers to participate in work-from-home job opportunities. Common schemes involve offers to be a mystery shopper, payment processing agent, money transfer agent, or other similar jobs where you are asked to allow deposits to be made to your personal bank account. These jobs do not exist.

If you have been affected by an unemployment benefits fraud or any other coronavirus-related scam, you can file a complaint at http://www.Fraud.org. You can help law enforcement bring scammers to justice.

ATTRIBUTION: Fraud.org