Thieves who tried to submit 10,000 bogus jobless claims blocked by UIA

Thieves continually test the Michigan Unemployment Insurance Agency’s (UIA) computer system by submitting bogus claims, but they ultimately fail. Using the agency’s anti-fraud tools, UIA staff recently identified more than 10,000 attempted filings made by fraudsters over a three-day period. No money was paid out.

The spike capped an eight-day stretch in late July of an elevated number of attempts to create unemployment benefit claims. Criminals use stolen personal information from Michiganders and others across the country to try to create claims in numerous states for benefits they don’t deserve. In Michigan, UIA’s proprietary anti-fraud software and use of national databases to verify claimant identities stop criminals from successfully filing claims.

“Anyone thinking about committing fraud to try and illegally obtain unemployment benefits should take this as a warning,” said UIA Director Julia Dale. “Stopping crime and strengthening the integrity of the unemployment system is UIA’s top priority. Our team spotted the large number of attempts right away and put a stop to any further action on these false claims. Thieves should know Michigan is not a state where you will get away with stealing from deserving citizens, but one where you will be caught and held accountable to the fullest extent of the law.”

Michiganders whose stolen identities were used to file the bogus claims or employers falsely listed as an applicant’s place of work may receive a notice of a fraudulent claim in the mail from the UIA.

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What claimants and residents need to know

Michiganders should be vigilant about any suspicious activity involving their personal identifying information. When a jobless claim is identified as fraudulent, no payment is made and the UIA will send a letter by U.S. mail to the address on file to confirm identity or other key information.

Those who receive notification from the UIA about a claim made using thier name but they have not filed one should report the fraudulent activity right away following these steps:

• Go to Michigan.gov/UIA.

• In the Services section, under Unemployment Benefits, click on the Report Fraud or Identity Theft link.

• On the Michigan Web Account Manager (MiWAM) screen, click on Report Identity Theft. On the next screen, click on Individual.

• Fill out the online form and also complete a Statement of Identity Theft. Submit both online.

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What employers need to know

Employers may report fraudulent claims to the UIA through MiWAM by clicking on either the Report Fraud or Report Identity Theft links. A second option is to fill out an Employer Report of Identity Theft and submit it electronically.

Employers should be sure to review any monetary determinations from the UIA, which note when the agency cannot confirm a claimant’s identity. A timely response helps to quickly resolve identity theft cases.

If the claim is determined to be fraudulent following a detailed investigation, a second letter will be sent by mail that will state the filed claim is null and void.

Employers may also call the Office of Employer Ombudsman at 1-855-484-2636 with questions.

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Fighting fraud is a UIA priority

Director Dale has prioritized anti-fraud efforts as part of her commitment to transform the agency into a national model for fair, fast, and fraud-free service. Key to that effort is installing a new computer system that will include robust anti-fraud processes to build on the agency’s current aggressive practices. The Deloitte uFACTS system is expected to be fully operational in 2025.
Other wide-ranging reforms Director Dale has launched to fight fraud:

• Naming a Legal Advisor and head of the Legal and Compliance Bureau to leverage collaborative anti-fraud practices to effectively pursue bad actors.

• Creating the UIA Modernization Workgroup – consisting of labor, business, and jobless advocates – to advise the UIA on significant improvements in how it can better serve Michigan workers and employers, including anti-fraud practices.

• Extending through September 2024 nearly 50 limited term positions in the Fraud and Investigations Division, with plans to hire at least 30 more.

• Implementing new ethics and security clearance policies for employees and contractors.

• Strengthening ties with the Department of Attorney General and local, state and federal agencies to bring bad actors to justice. To date, 158 individuals have been arrested or charged in connection with unemployment benefits fraud, 79 have been convicted, and 47 sentenced.

• Collaborating closely with the Department of Technology, Management and Budget (DTMB) and the Michigan Security Operations Center to identify fraudulent claims filing activity.

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Award-winning anti-fraud work

UIA has won four national awards since 2019 from the U.S. Department of Labor’s (DOL) Office of Inspector General for its work investigating fraud cases:

• This year, a UIA regulation agent was honored for bringing down a multi-state criminal enterprise in Florida that stole more than $250,000 in unemployment benefits in Michigan.

• In 2022, another regulation agent was recognized for a successful investigation that led to the prosecution of a UIA contract employee and two co-conspirators. The three defrauded the State of Michigan and the U.S. government of more than $3.8 million through false claims submitted during the COVID-19 pandemic.

• In 2019 and 2020, UIA was named by DOL the Most Improved Integrity Program.

• UIA’s What is UI Fraud webpage explains the tools and resources the agency uses to fight fraud.

Anyone who needs help with a claim or has questions can:

• Speak with an Agent: Schedule an in-person, phone or virtual meeting at Michigan.gov/UIA

• Call Customer Service: 1-866-500-0017 during regular business hours

• Chat with Ava: The chat bot can answer many questions at Michigan.gov/UIA