More Fraudulent Unemployment Claims Hit Employers
Employers continue to report fraudulent unemployment claims, weeks after issues first surfaced following the launch of a new Connecticut Department of Labor website.
Numerous reports of fraud first surfaced last month, just weeks after DOL launched the ReEmployCT website as part of a $60 million modernization project to replace the agency’s 40-year-old technology systems.
In late July, third-party unemployment compensation service provider Unemployment Tax Management Corporation said more than 50% of claims it received on behalf of clients through ReEmployCT were fraudulent.
The Hartford Courant reported Aug. 25 that employers continue to receive false information about employed workers filing for unemployment benefits.
CBIA has also received a half dozen fraud reports from businesses in the last 10 days.
‘Total Chaos’
“I’ve received four fraudulent claims this month with the latest being for me!” one business owner said.
In a post on CBIA’s website, another employer wrote that “it is impossible to get through [to DOL] as an employer to respond to the claim.”
“I’ve spent two-plus hours on this already,” she wrote. “Total chaos. And I echo the others in my concerns over data security.”
David Durkee, co-owner of Salem consulting firm Radcor LLC, told the Courant he could not reach DOL by telephone after receiving a notice that he had filed for unemployment benefits.
“The software system is kicking out notices or the system is breached,” he said.
Employees also shared their concerns, with one posting on CBIA’s website that it took DOL six days to call back after he notified the agency of a fraudulent claim made in his name.
“At this point, I’m just wondering how worried I should be about my information having been stolen,” he wrote.
“Was this an internal computer snafu or does some hacker have the employment and social security information of every person employed [in Connecticut]?”
DOL Refutes Breach Claims
DOL officials told the Courant that the agency’s new system has not been breached and the problem is “100% identity theft.”
“We’re actually the people telling you there is a problem,” a spokesperson said. “There’s an identity theft problem and we’re the first ones to notify you.”
UTMC president Rich Siegel said employers that receive DOL unemployment notices should immediately confirm with any current employee.
He added that employers should quickly respond to DOL claim requests if the employee has not filed by indicating the claim is fraudulent.
Employers should also encourage employees to file a fraud report with DOL.
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I initially thought the new ReEmploy system was to blame for all of the fraudulent claims I was being made aware of (mine included) but after speaking with someone at the DOL, I realize that the new system actually has been instrumental in bringing these fraudulent claims to our attention so quickly.
Great article. We had 3 claims against employees from our company last week!
I find it hard to believe that there has been no data breach and that it is 100% identity theft when identity theft has been around for a long time, however, in the 3 years I have worked here we have NEVER had a fraudulent unemployment claim. Now, just months after the launch of the new website, we have had 5 fraudulent claims. Why the sudden up tick right after the launch? What has changed in the identity theft world that they suddenly have the information from so many CT employees all at once? If the DOL can prove that it is not from their system, why are they being so vague about it? Why not publish the facts as to why it can’t be them?