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

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

When is it considered fraud?

It is considered fraud when a person:

• He intentionally withholds all of his income, even if he has not yet received payment.
• She does not disclose the real reason why she became unemployed.
• Conceals or provides false information that could affect your eligibility or the amount of your benefits
• Uses another person's identity to apply for or obtain benefits
• He does not report that he has returned to work
• It allows another person to certify benefits on your behalf
• Altering, buying, selling, or falsifying a Social Security card is a serious crime under federal law.

Consequences of unemployment fraud

Committing fraud can result in serious consequences, including:

• Criminal proceedings and possible prison sentence
• Significant fines and penalties
• Seizure of state or federal tax refunds to recover money owed
• Loss of entitlement to future unemployment benefits
• Obligation to reimburse the benefits received, along with interest and penalties

How to report potential fraud?

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