Unemployment Insurance is an important resource for those who qualify and their dependents, but it can easily be put at risk if fraud is committed. UI fraud can be quickly detected by the NJ Division of Employment Insurance as they have multiple systems to search for and identify cases of UI fraud. This includes random checks. For this reason, it is essential to avoid committing fraudulent actions.
What is Unemployment Insurance Fraud?
Unemployment insurance fraud can be defined as any deceptive action that alters the benefits one receives from unemployment insurance. Here is a complete list of actions recognized as UI fraud:
- Failing to report all earnings, even those not yet received.
- Providing false reasons as to why one is unemployed.
- Hiding and/or lying about anything that could affect the amount of benefits or a person's eligibility for benefits.
- Use the identity of a different person at any time to claim UI benefits.
- Hide that one has gotten a job.
- Allowing another person to certify one's benefits.
- Change, purchase or falsify a Social Security card.
How can you avoid committing Unemployment Insurance fraud?
The main thing to keep in mind is to be honest and thorough throughout the UI application process, especially when reporting any relevant information. If you are not sure if something is relevant, it is better to include it than risk committing fraud.
What happens if Unemployment Insurance fraud is committed?
As with anything else, there are degrees of fraud in unemployment insurance. However, no matter how small or large the fraud is, committing any UI fraud will result in punishment. These sanctions include:
- Criminal prosecution and imprisonment.
- Fines and penalties.
- Deductions from state or federal income tax refunds to repay any money owed due to fraud.
- Denial of future unemployment benefits.
It is certain that the fraudster will be obliged to return the benefits received, including interest and fines.
What should you do if you suspect Unemployment Insurance fraud?
If you suspect unemployment insurance fraud is being committed, you should report it. These are the contacts to report fraud:
- By phone: 609-777-4304
- By fax: 609-292-5593
- By mail: Benefit Payment Control, PO Box 043, Trenton NJ 08625
For identity theft that involves a fraudulent claim using personal information, use This form.
For incidents where someone is collecting benefits while working, use this form. Except for an identity theft claim, one does not need to identify themselves when reporting.
Source: Unemployment Insurance Division | Unemployment Fraud (nj.gov)
Source: Unemployment Insurance Division | How to report fraud (nj.gov)