Identity Theft Related to Unemployment Benefits
Identity theft is one of the most frustrating, frightening and financially damaging things that can happen to you. This is especially true when you already face challenges due to unemployment. The Federal Bureau of Investigations (FBI) reports an increase in scams and stolen information during these difficult pandemic times. When hackers and scammers steal your right to collect unemployment benefits or the money directly, it affects not only your ability to pay your bills today but also your credit score and future financial stability.
How Do Identity Thieves Affect Unemployment Benefits?
Scammers adopt a sophisticated collection of methods used to pry money from others through nefarious means. The most common forms of access to personal data include:
Direct purchases of stolen information lists
Commercial or personal data breaches (hacking)
Phone or email phishing or impersonation scams
Automatic scanning of data from public online accounts
Unfortunately, far too many people share their information without appropriate protection in place. Still more fall prey to "click this link" enticements in emails designed to look like they are from a personal account or authority.
How Does Unemployment Benefit Theft Work?
Once the criminal has access to information, they file for unemployment benefits using your name and Social Security number but their bank account information or address. The government agencies do not have enough resources to carefully check each claim. In an attempt to get unemployment benefits to people as quickly as possible, payments go through using the available data.
These benefits scams are particularly difficult to overcome because you will not know what is going on until you attempt to file for unemployment yourself or your employer approaches you directly. You may also discover the income discrepancies when you receive a 1099-G form or file your taxes with the IRS. By this time, you have been cheated out of a lot of money that could help you and your family greatly if you lose your job.
What Can You Do to Protect Yourself?
Take all the usual precautions recommended against identity theft and unapproved access to personal information. Do not engage with cold callers on the telephone no matter who they claim to be. Contact your employer or bank directly if you have questions or concerns. Never click on a link in an email. Go to the website directly in your browser to look for more information. Refuse to share identifying or personal information with people on social media or other websites that may not guarantee your privacy.
If you get laid off or otherwise lose your job through no fault of your own, unemployment benefits can help you and your family stay afloat and pay for essentials until your work situation changes. When scammers get a hold of your information and file for unemployment benefits, they are cheating you out of your rights and your money.
Identity theft is a difficult problem to recover from. With the increase in unemployment due to Covid-19 and economic downturns, you must remain more vigilant than ever before to protect yourself against these scammers and thieves.
