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Saturday, May 9, 2020

COVID-19 SCAMS- Unemployment Insurance Fraud


Scammers apparently are targeting unemployment payments to get money intended for honest citizens who need help. Taking a page from the IRS scam playbook where a fraudster files with the IRS for an income tax refund using someone else’s identity, press reports indicate that fraudsters are filing for unemployment in other people’s names. And sometimes they file with the names of people who are employed.

Several people have told the local press that they had received letters from the Washington State Employment Security Department (ESD) about their claims for unemployment benefits. Benefits that they did not apply for since they have jobs. The ESD notifications were the first indication that anything was wrong.

In the IRS scam, the fraudster tries to file for income taxes in the name of someone else before that person files for their income taxes. Using that person’s personal information, the fraudster files a fake return that results in a refund sent to the fraudster. Often the victim has no idea that anything is wrong until they receive a notice from the IRS that it has received a duplicate tax filing from the taxpayer.

The Seattle Times cited several examples of people with jobs receiving notices about their unemployment claims from ESD. It did not have any examples of people out of a job, filing for unemployment only to find out that someone has filed in their name before them.

With ESD slammed with an unprecedented workload, sorting out the frauds from the real becomes much more difficult for the agency and its clients. The Seattle Times cited several examples of citizens trying to contact the agency only to find busy phone lines and no response to emails.   

The unprecedented amount of money available for unemployment compensation along with the backed-up phone lines and web sites provides a natural attraction to fraudsters to steal from the government and therefore the taxpayers.

How the fraudsters obtained enough personal information to file claims is a good question for police and the public. Meeghan Black of the Bellevue Police Department asked, “Was mail stolen, was it a phishing scam, can we nail it down somehow locally and try to go after these guys that way?” Another avenue is data breaches. In recent years there have been record numbers of data breaches from financial institutions, retail chains, hotels, etc. Often the personal data gleaned from such breaches is not used right away. Those who have stolen the data may sell it to fraudsters years later, on the dark web.

If you discover that someone else has filed an unemployment claim with ESD in your name notify ESD immediately. For information on how to notify ESD go to,



                      https://esd.wa.gov/unemployment/unemployment-benefits-fraud





To protect your identity, the Identity Theft Resource Center recommends,



·         Watching for fraudulent filings for nutrition assistance, Supplemental Nutrition for Women, Infants, and Children, medical coverage, etc.

·         If you can, place a freeze on your credit report with the three credit agencies.

·         Carefully monitor your bank accounts, credit cards, credit reports, etc.









KIRO TV:




Seattle Times:




Identity Theft Resource Center:





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