The rise in unemployment has led to record numbers of unemployment insurance payouts as well as fraudulent claims. Overpayments alone can top $3 billion each year in the United States. That equates to almost 13 percent of all claims being improperly paid. With numbers like that, you can’t afford to ignore unemployment fraud.

What counts as fraud?

Any time someone filing a claim for unemployment lies about an aspect, it’s fraud. This may include using fake names or companies to increase the amount of money received. Because the claims are filed through an agency, these cases may not be initially caught. More commonly, people continue to file for unemployment after gaining new employment.

When caught engaging in fraudulent unemployment behavior, those involved must pay back everything received as well as a percentage on the payments. Despite these risks and the illegality of the action, some are desperate enough to risk it because they are in that need of money.

Detecting and preventing fraud

When navigating and detecting unemployment fraud, your greatest defense is diligent monitoring. Simply being notified of a claim and signing off on it can cause these overpayments and fraud to occur right under your nose.

A leading cause comes from employers who don’t provide the correct information to the government in a timely fashion to determine whether a worker is eligible. Staying on top of due dates is one of the simplest ways to keep from paying inaccurate claims.

Another way to help defend against fraudulent unemployment claims is to cross-check claims across the nation. Done at the state level, agencies can use systems such as National Directory of New Hires and state exchange systems to determine if claimants have found new employment or if they’ve filed overlapping claims in other states.

Use unemployment tracking software

At the company level, staying organized and on top of your workers’ claims are the best ways to prevent overpaying and unemployment fraud. Because this is a labor-intensive job, finding time in your workforce may prove problematic, especially if you want your monitoring to be precise.

Unemployment Tracker has everything you need to maximize your business and your bottom line. Our fully customizable software is your solution for all your unemployment insurance challenges, from insurance claim to tracking to full-service claim tracking. Never miss a deadline again with Unemployment Tracker.