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Unemployment fraud

Unemployment insurance is an essential safety net that helps individuals and their families meet their basic needs while they search for new employment. These benefits exist to support those who truly need them. Fraudulently claiming unemployment benefits is a serious crime and can have serious legal and financial consequences. To protect the integrity of the program, the state actively investigates any possible fraud.

State agencies compare applicants' information with data from other state and federal government agencies to verify employment status and undeclared income. In addition, random investigations are conducted to review eligibility, payroll records, and employment search efforts. If a case is selected for verification, the agency will contact the person to schedule an interview.

When is fraud considered?

It is considered fraud when a person:

  • They do not intentionally declare all their income, even if they have not yet received payment.
  • She does not report the real reason why she became unemployed
  • Hiding or providing false information that could affect your eligibility or the amount of your benefits
  • Using another person's identity to solicit or obtain benefits
  • He does not report that he has returned to work
  • It allows another person to certify benefits on your behalf
  • Altera purchases, sells, or falsifies a Social Security card, which is a serious offense under federal law.

Consequences of unemployment fraud

Committing fraud can result in serious consequences, including:

  • Criminal proceedings and possible prison sentence
  • Significant fines and sanctions
  • Suspension of state or federal tax refunds to recover the money owed
  • Loss of the right to receive unemployment benefits in the future
  • Obligation to repay the benefits received, together with interest and fines

How to report a possible fraud?

If you suspect that someone is receiving unemployment benefits illegally or is committing fraud, it is important Report it to the New Jersey Division of Unemployment Insurance to protect the resources available to those who really need them.

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