About Reporting Unemployment Compensation Fraud
Unemployment Compensation fraud increases unemployment taxes for businesses, threatens the availability of funds for people with legitimate Unemployment Compensation claims, and strains the Commonwealth's unemployment trust fund.
Unemployment Compensation fraud typically falls into one of three categories:
Identity Theft
Identity theft is a serious crime that occurs when someone else uses your personally identifiable information such as your name, Social Security number, credit card information, driver’s license number, or other identifying information without your consent. Most of the time, this stolen information is used to obtain credit, merchandise, or services in the name of the victim. It can also be used to file for Unemployment Compensation (UC) benefits.
Claimant Fraud
Claimant UC fraud can include knowingly submitting false information to obtain or increase UC benefits; continuing to collect benefits when knowing oneself to be ineligible; or intentionally not reporting wages or income while collecting full UC benefits.
Employer Fraud
Employers that take actions to avoid paying UC taxes are committing fraud. Those actions include paying employee wages under the table; failing to register as an employer with L&I; failing to report all employees or wages paid; and assisting an employee in filing a fraudulent claim for UC benefits.
How to Report Unemployment Compensation Fraud
L&I investigates all reports of suspected fraud.
To report Unemployment Compensation fraud, you have two options:
Online: You can report suspected fraud online.
Phone: You can report fraud by phone, call the PA Fraud Hotline at 1-800-692-7469.
If you suspect that you're the victim of identity you should also file a police report with local law enforcement.
Frequently Asked Questions
- Never give out personal information over email, text, or social media channels – especially to anyone claiming they can help you apply for Unemployment Compensation benefits. Third parties can’t apply for your benefits.
- Don’t wire money, and always ignore the following requests:
- Communications relating to your benefits from someone asking for money
- Someone who says they can help you file for your benefits for a fee
- Anyone claiming to work for L&I who says they need a fee to complete your application
- If you file an Unemployment Compensation claim, save our phone number (888-313-7284) so you know you’re receiving a legitimate call from L&I. We will ask you for some personally identifiable information, including the last four digits of your Social Security number (SSN) when we call you. We will not ask for your full SSN unless you contact us.
- First, report it to L&I. To report someone who has filed for Unemployment Compensation benefits using your personal information (name, Social Security number, date of birth, etc.), please complete and submit the Identity Theft Form. Or, call the PA Fraud Hotline at 1-800-692-7469.
- Report suspected identity theft to your local police department and the Federal Trade Commission.
- Place a fraud alert on your credit reports and review your credit reports periodically to ensure no new fraudulent activity has occurred.
- Close the accounts that you know or believe have been tampered with or opened fraudulently.
- Request your free credit reports and review them for other fraudulent activities.
Penalties may include:
- Criminal prosecution with fines.
- Required repayment of fraudulently collected benefits.
- The offset of federal income tax refunds to collect the debt owed.
- The assessment of penalty weeks against the future receipt of UC benefits.