Government Benefits Fraud

Unemployment insurance fraud

During and after the COVID-19 pandemic, unemployment fraud exploded. Criminals filed claims using stolen identities, and state workforce agencies paid out billions to fraudsters. Signs include:

• •A 1099-G form showing unemployment benefits you never received.
• •A letter from your state's unemployment agency about a claim you didn't file.
• •Notification from your employer that an unemployment claim was filed in your name.
• •Denied when you try to file a legitimate claim.

What to do: Contact your state's unemployment agency immediately to report fraud. Many states have a dedicated fraud-reporting line or online portal. File an FTC Identity Theft Report. If you received a 1099-G for benefits you didn't get, file IRS Form 14039 and respond to the IRS explaining the fraud.

Social Security benefits fraud

Someone may try to divert your Social Security benefits by changing the direct-deposit information, filing for benefits in your name before you do, or claiming dependent benefits.

• •Create a my Social Security account at ssa.gov/myaccount to monitor your benefits and direct-deposit settings.
• •Enable the "block electronic access" feature if you're concerned about unauthorized changes.
• •Report suspected fraud to SSA's Office of Inspector General at oig.ssa.gov/report or 1-800-269-0271.

SNAP, Medicaid, and other state benefits

Each state administers its own SNAP (food assistance), Medicaid, and other benefit programs. If you're denied because records show you're already receiving benefits, or you receive notices about benefits you didn't apply for, contact your state's health and human services agency to report fraud and clear your record.

EBT card theft

EBT (Electronic Benefits Transfer) cards have been targeted by skimming and card-cloning schemes. If your SNAP or cash benefits are drained, report it to your state agency immediately. Many states now offer replacement benefits for skimming victims.