A local employer is raising concerns after a number of companies discovered what they believe are fraudulent unemployment claims through Connecticut’s new unemployment system.

Leaders at the Unemployment Tax Management Corporation said more than 50% of unemployment claims they received on behalf of their clients through ReEmployCT since July 24 were fraudulent. 

Officials with the Department of Labor said the new unemployment system is working as it should.

They said the system cross checks for fraudulent activity, but employers are among the first line of defense against fraud when information about a claim looks suspicious.

Officials said employers who receive fraudulent claims should respond to DOL's notice of claims request if it appears to be fraudulent.

UTMC, a third-party unemployment compensation service provider, is encouraging clients to review any new claims for unemployment that they received since July 5.

Program Launch

The Department of Labor launched ReEmployCT to replace the 40-year-old technology that previously supported the unemployment compensation program. 

The new system is designed to streamline the filing process for unemployed workers and the estimated 115,00 employers who pay into the state’s Unemployment Trust fund. 

Per the requirement, employers created a new account and credentials through the ReEmployCT website.

All unemployment tax payments and claim-related notices and documents are online under the new program.

All unemployment tax payments and claim-related notices and documents are online under the new program.

UTMC president Rich Siegel said he discovered the fraud while reviewing claims he received on behalf of his clients.

Siegel has reported the fraud on behalf of his clients to DOL. 

Further Claims 

CBIA member companies have also reported finding fraudulent claims. 

Employers are concerned because the claims contain important identifying information about their employees. 

One New Haven County manufacturer said the company received at least two fraudulent claims.

Both claims appeared to have been filed by current employees. 

One manufacturer received two claims that appeared to have been filed by current employees. 

The employer said the claim contained both the employees’ names and social security numbers. 

The employees said they had given that information to DOL when they filed claims for unemployment previously, however they had not claimed unemployment during the month of July. 

Steps for Employers

Siegel is urging employers to confirm with any current employee that they have not filed for unemployment. 

He said the employer should quickly respond to the DOL’s claim request if the employee has not filed by indicating that the claim is a potential fraudulent claim. 

Employers should also encourage employees to complete a fraud report on DOL’s state website.

CBIA will continue to monitor the issue and will report any additional information provided by DOL in the coming days. 

Employers can contact CBIA or email Siegel with further questions.

21 thoughts on “Connecticut Employers Receive Fraudulent Unemployment Claims

  1. Our practice has received 5 fraudulent claims so far, all for current employees including one of the owners. We use UTMC and have reported these all as fraudulent. I would like to know what the State is doing about this??? I'm sure the new system cost taxpayers a substantial amount of money but it obviously left cyber criminals an easy way to apply for unemployment funds. This is very concerning for the employees involved as well as our entire practice.

  2. My firm received a letter today regarding a fraudulent claim.
    What's very interesting is the letter indicates the claimant's last day of work was July 5th, the same day the new system went live.
    Is the Connecticut Department of Labor going to offer credit monitoring for the potential victims?
    Why has there not been any communication from the Connecticut Department of Labor regarding this critical issue?
    Should my other employee's be concerned?
    Should my company be concerned since my company information may be exposed?

  3. We have received three so far on the ReEmploy CT website, one of those via mail as well. What is most concerning is the one received via mail contained the employee's full SSN and not just the last four!

    The State spends $60 million on this website, it has no instruction link, is horribly clunky, has missing functionality, trying to respond to the claims on the website brings about an error message and I'm not buying the data breach hasn't come from the State (or one of their vendors), it's just too much of a coincidence.

    I watched one of the Town Hall videos from June and it sounded like the website was not ready for release. The whole process has been rushed and obviously not very professionally managed.

  4. We received 1 so far by mail. We questioned our employee who was very upset that a fraudulent unemployment claim was made when he clearly is still employed by our firm. I directed him to the website suggested in the article so he could file a fraudulent claim on his own behalf.
    I had just read this article and then shortly after, received the unemployment claim in the mail. Should we alert other employees? We didn't even know that the DOL was changing their system! I tried to contact the DOL but keep getting a busy signal...big surprise. I ended up sending a fax with a note telling them the claim was fraudulent. Waiting to see if other claims pop up.

  5. We received one on July 28th and another one today Aug 1st. We thought it was a scam, but email addresses, phone numbers, etc were all accurate. We've tried to reach someone from the state to discuss this, to no avail.

  6. I received a notice today for a current employee. These articles tell you to notify the Department of Labor right away but you can't get a live person on the phone, EVER!! I have a hard time believing that their new system had nothing to do with this. They need to fix this!

  7. We received an unemployment claim for a current employee yesterday. Filed the necessary paperwork online and faxing. Both the employer and the employee needs to file paperwork to dispute. Employees could get charged with returning the money plus fees. There may be a connection between direct deposit of unemployment checks in the past and the DOL use of SSNumbers. Check your bank accounts if you are a victim of a fraudulent unemployment claim on your behalf.
    The DOL phone numbers are all automated and then give a busy signal.

  8. I was notified by my employer last Thursday 7-28-22 about a claim made on my behalf. He was wondering why I had filed for unemployment since I am employed full time, often more than 40 hours. Of course I hadn't filed. I called the DOL right away to clear up the issue and had to schedule a call back since the State of CT government is apparently completely overwhelmed with normal life. The soonest option for a call back was today Wed. 8-3-22 at 10:30 am. Sure enough, they did call me back at the appointed time but I'm pretty sure nothing was accomplished by this lond awaited call. The DOL rep said she would note my side of the story in my file and that was it, all she could do.
    At this point, I'm just wondering how worried I should be about my information having been stolen. Come clean CT DOL. Was this an internal computer snafu or does some hacker have the employment and social security information of every person employed in the previously great State of CT?

  9. We received two this week. Both fraudulent and I was informed by one of my customers that one of his employees received one too. Obviously this is a serious breach of security and it looks like a State cover-up. Really bad!!!

  10. My employer received a claim saying I had applied for unemployment. It was filed July 22. We received it at the office yesterday August 5. I am alarmed because it has my Social Security number on it.

  11. I am furious! How could this happen? My employer received a claim for unemployment with all of my personal information on it. I have tried reaching someway Unemployment with out success. Their website is a joke. There are no apparent avenues easily available for reporting fraud. I’m the meantime what else is happening with my information? I feel so violated. If I wanted my personal info available to the public I would have put it on Facebook! What are you doing for the victims?

    1. Gloria you took the words right out of my mouth. I'm sitting at work then HR calls me and tell me they received a letter from unemployment, it has my full social security number. I feel completely violated. What is going to happen for people like me? Can someone let us know? Why were there not any posting to the website to make people aware? Something is just not right, I am completely disappointed in the State of CT.

  12. I received one such claim for a current employee. the claim was fraudulent. In the notice I received from DOL, there was a number to call. I called it and it was answered immediately. The person I spoke with at the DOL was very helpful and showed me how to access the fraudulent claims reporting site. Go to the DOL home page. At the bottom of the page there is a link to report claims. Click on it and you can fill it in on line. It also had a form for the employee in question to fill in. It was also suggested the employee report the fraud attempt to the police. I understand this is very disturbing, as no one wants their information made public, and how and why this happens is not clear. However, I had no problem reaching a live person to talk with at DOL and suggest everyone try again. Use the number on the notification you received from DOL.

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