Uptick in Fraudulent Unemployment Claims

The NJCCIC received reports of an uptick in fraudulent New Jersey Department of Labor and Workforce Development Unemployment Insurance (UI) claims, primarily targeting public sector education employees who are still employed. The availability of employee information posted on official websites or social media platforms, combined with personally identifiable information (PII) exposed in past data breaches or sold on the dark web, enables threat actors to apply for and collect UI benefits illegally.

Victims may not be aware that fraudulent UI benefits applications are being attempted under their name until they try to apply for UI benefits and are denied or rejected because a claim has already been filed under their name, or they receive a determination letter indicating that an application has been received under their name, but they did not apply for UI benefits. Additionally, a current or former employer may notify the victim that a claim has been submitted with their PII.

Recommendations

  • Reduce your digital footprint so threat actors cannot easily target you.
  • If PII compromise is suspected or detected, contact your local law enforcement department and review the Identity Theft and Compromised PII NJCCIC Informational Report for additional recommendations and resources.
  • Suspected unemployment insurance fraud can be reported to the New Jersey Department of Labor and Workforce Development via their Report Fraud online form or by phone at 609-777-4304.
  • Report malicious cyber activity to the NJCCIC, the FBI’s IC3, and the FTC.