Unemployment insurance fraud is taken very seriously. The federal and state governments ask citizens to report anyone who is knowingly receiving payments under fraudulent circumstances. It is a crime to begin or continue receiving unemployment benefit payments under false pretenses. To report unemployment insurance fraud, contact your local State Unemployment Agency to file a formal report.
There are many ways individuals commit unemployment insurance fraud. Committing fraud involves submitting false information regarding any/all of the following: income earned, availability to work, ability to work, unreported travel or sick time, job offer refusals, etc. Falsifying or purposely omitting information regarding any item reported on your weekly claim is considered fraud.
Most often, an individual commits fraud by not reporting income. In this case, an individual is in fact working, but continues to receive unemployment payments. By law, all income must be reported on a recipient’s weekly claims. Failure to do so is considered fraud.
Each State - including NYS Unemployment - Unemployment Office uses a variety of tools to detect fraud along with public reporting, including employer hiring reports, quality control audits, government records, etc. Alternate strategies for detecting fraud are constantly being developed.
If you know an individual who is employed, including in a part-time, freelance, short-term, or “under the table” position, and they do not report this income on their weekly claim, you should alert your State Unemployment Agency.