PHOENIX – On Friday, the Arizona Department of Economic Security issued a warning to consumers about a new fraud scheme targeting unemployment benefits. According to the Department, it has received over 660,000 PAU claims in the last two weeks alone, indicating a high number of fraudulent claims being filed.
The Department says that it as recently become aware that some Arizona residents are receiving notices and PAU (Pandemic Unemployment Assistance) benefit cards at their address with the names of individuals who do not reside at that location.
In most instances, according to the Department, payment was blocked due to fraud prevention measures implemented by DES and there are no funds loaded on the cards.
The Department as also formed a new joint task force with law enforcement to combat unemployment fraud. The DES Office of the Inspector General (OIG) has launched a task force comprised of federal, state, and local agencies, including the Arizona Department of Public Safety, the Maricopa County Sheriff’s Office, the Arizona Attorney General’s Office and other law enforcement agencies to investigate large-scale, organized unemployment insurance fraud in Arizona.
Arizona and states across the nation continue to see an extraordinary number of claims filed as a result of identity theft. In this current phase of fraudulent activity, criminals are taking advantage of the federal program by inputting randomly selected, in-state addresses to bypass fraud identifiers.
Since March, DES has issued over $11.4 billion in assistance to 1.6 million claimants.
The Department compiled tips for what to do when you suspect unemployment fraud:
- Individuals who receive notices and benefit cards from DES but did not apply for benefits are instructed to report this online at bit.ly/ReportAZUIFraud or by calling 1 (800) 251-2436. The webform is available in English and Spanish. When reporting fraud, individuals should provide identifying information in the web form that will help locate the claim in our systems. This includes full name (as it appears on the documents received from the UI program), mailing address where the documents were received, and SSN (when documents are received in the individual’s name). Individuals are advised to destroy cards they erroneously received. Once DES is able to locate the fraudulent claim, we can take appropriate action and do not need the card returned.
- Individuals who receive notification of unemployment assistance benefits in their name for which they did not apply may be the victim of identity theft for those who seek to obtain fraudulent benefits. If an individual believes they were the victim of identity theft, they should report it to DES online at bit.ly/ReportAZUIFraud or by calling 1 (800) 251-2436. We also encourage them to go to the Federal Trade Commission (FTC) identity theft website, identitytheft.gov, to report and protect themselves from further victimization. They are also advised to monitor their credit report for any other fraudulent activity that may come as a result of identity theft. Individuals can learn more about protecting themselves from Unemployment Insurance Fraud in this Unemployment Insurance Consumer Protection Guide issued by the U.S. Department of Justice National Unemployment Insurance Fraud Task Force.