Unemployment Insurance Fraud

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To report suspected unemployment fraud, click HERE.

The Nebraska Department of Labor (NDOL) reminds all Nebraska residents to be vigilant and look out for unemployment fraud schemes that continue to be prevalent nationwide. These include identity theft scams and fraudsters posing as state workforce agencies to solicit personally identifiable information for the purpose of collecting unemployment benefits.

Nebraskan residents should be on the lookout for notices indicating a claim was filed in their name. Anyone who receives a written determination letter from NDOL, but did not apply for unemployment benefits, should immediately report the incident. A special email was established for identity theft discovered through 1099 tax forms. Any individual who received a 1099-G from NDOL, but did not file an unemployment claim, should report suspected fraud by emailing NDOL.1099fraud@nebraska.gov and filing a police report.

Individual Fraud

Examples of claimant/worker fraud include:

  • Providing false information to obtain unemployment benefits
  • Returning to full-time work but continuing to receive unemployment benefits
  • Working part-time but not reporting gross earnings to the State, thereby collecting more benefits than allowed

Consequences of claimant unemployment insurance fraud may include:

  • Repaying benefits received
  • 15% penalty based on the amount of the overpayment
  • Losing eligibility to receive benefits now and in the future
  • Forfeiting state and federal income tax refunds
  • Criminal charges, jail time, felony or misdemeanor conviction

Report Individual Fraud:  https://dol.nebraska.gov/Fraud/ReportIndividualFraud

NDOL does NOT use text messages to issue determinations regarding a claim, nor does it contact claimants via social media regarding their claim. Individuals should not give out personal information via social media and messaging platforms. Individuals should only interact with NDOL’s official Facebook page, which has a blue checkmark certifying the authenticity of the page. Anyone who comes across an imposter Facebook page or fraudulent message of any kind should report the incident.

A new federal requirement for Pandemic Unemployment Assistance (PUA) is to verify self-employment and identity of claimants. Even if a claim was previously approved, each claimant will be asked to provide additional information. NEworks.nebraska.gov upgrades frequently to increase system security and deter fraud.

To prevent fraudsters from accessing personal NEworks account information, consider the following password safety best practices:

  • Choose a strong password or passphrase and challenge questions.
  • Avoid reusing passwords.
  • Update passwords regularly.
  • Do not share passwords or account information with others.
  • Use only trusted devices to access accounts.
  • Password-protect your home internet and only connect to well-known or reputable WiFi hotspots when in public.
  • Always sign out of NEworks once you are finished with your session.

Resources for reporting fraud:

Internal Revenue Service: Taxpayer Guide to Identity Theft

Federal Trade Commission: Identity Theft Information

US Department of Justice: Disaster Complaint Form

Employer Fraud

Examples of employer fraud include:

  • Paying “off the books” or “under the table” wages
  • Not reporting wages to the Nebraska Department of Labor
  • Misclassifying workers who are employees as independent contractors
  • Committing a Class III misdemeanor by making a false statement or representation to:
    1. Prevent or reduce the payment of benefits to any individual eligible for these benefits
    2. Obtain benefits for an individual not eligible for benefits, or
    3. Avoid or reduce any contribution or other payment required from an employer under sections 48-648 and 48-649 of the Nebraska Employment Security Law.

Consequences of employer unemployment insurance fraud may include:

  • Pay the highest combined tax rate for the year of the violation and for the next three years
  • Pay a penalty of 2% of taxable wages for the year of the violation and for the next three years
  • Be subject to a civil penalty of up to $5,000
  • Be charged with a Class IV felony
  • Forfeiting state and federal income tax refunds

Report Employer Fraud