Tips and Advice

3 Unusual Unemployment Scams

While some unemployment schemes like counterfeit checks are typical, there are a few strange scams that have been used to collect unemployment benefits.
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By AmOne
Updated on: November 11th, 2022

scam stamp Unemployment numbers are a roller coaster right now, they’re up and down every month. With so many people needing unemployment benefits it’s not surprising that unemployment scams are also on the rise.

CNN Money created a list of 8 unemployment scams, and while some are expected like counterfeit checks or trying to collect benefits while you’re employed, there are quite a few strange schemes that have been used. There’s even one you should watch for no matter if you are not collecting benefits.

  • Filing claims from the graveyard. This takes identity theft to another level, a family in New Jersey was arrested for filing unemployment claims using the names of deceased relatives. The family along with more than two dozen other citizens had defrauded the state out of more than $2 million.
  • Being on the “inside”. One Texas state employee actually approved fraudulent claims that she also helped to file. In exchange for approving the claims she was receiving $200 a pop.
  • Faking It. Fake people are common in unemployment scams and now fake companies are too. In California 13 “casting agencies” laid off employees over a seven year period and collected over $800,000 in fraudulent unemployment benefits. The names they used were of nearby school children. Just another reason why it’s important to also check your child’s credit report.

With people filing false unemployment claims it’s no wonder the numbers keep going up and down. Just remember that although it seems like a good idea, a number of the claimants mentioned are now spending their unemployment in jail which is sadly another place where unemployment scams are taking place!