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.
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.
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.
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.
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.