The presence of unemployment-related fraud claims has grown in the wake of the COVID pandemic and include both fraudulent claims and imposter claims. But by being aware of the types of frauds, your organization can help minimize the results.
Unemployment-related scams can happen to a current or former employee—regardless of an employee’s role at an organization. While scams were also present pre-coronavirus, current unemployment scams primarily fall under the following categories:
FRAUDULENT UNEMPLOYMENT BENEFIT CLAIMS
These are false claims filed using the personal information of an employed or unemployed individual. This type of scam can allow a scammer to receive someone else’s falsified unemployment benefits.
These generally come in the form of emails sent with the intent of tricking people into giving away personal information. This may allow scammers to:
- File fraudulent unemployment claims.
- Change bank account information on legitimate unemployment claims.
- Steal additional personal information.
Knowing these types of scams is the first step toward safety. Next comes educating your workforce and being prepared to take action. Some steps to take to help prevent fraudulent activities:
- Educate employees on how to identify phishing attempts. Consider providing formal educational opportunities on how to identify phishing attempts and highlighting the importance of this topic using internal employee communications.
- Train appropriate teams on how to identify unemployment claim scams. For example, HR professionals who will be administrating or responding to unemployment claims should be well-informed on current scam tactics.
- Review cybersecurity best practices. The FTC provides guidance, including a guide for small businesses, that organizations can use to help determine the best steps to take in their own organizations.
- Communicate effectively with employees. Ensure education and communication regarding scams are ongoing initiatives so that employees remain up to date on how to help prevent scams.
Worried about scams like these? We’re here to help. Never hesitate to reach out to us with questions or concerns.