What do I do if someone applies for unemployment under my name?

We continue to track the increase in fraud through our Financial Hardship Studies. As of our latest report, 35% of consumers said they were either the targets or victims of a digital fraud attempt. As hardship continues for many families, particularly through the COVID-19 pandemic, fraudsters capitalize by evolving their tactics to match the times. Most recently, unemployment insurance fraud has become a popular scheme.

Unemployment insurance fraud happens when someone uses your personal information to file for unemployment benefits in your name. Victims of this scheme may only find out when they receive notice from their state unemployment insurance agency, employer or if they try to apply for unemployment themselves. Unemployment benefits don’t appear on your reports and unemployment doesn’t directly impact your credit score.

However, if someone is able to apply for benefits in your name, it means they have pieces of personal identifying information that can be used in ways beyond unemployment insurance claims, like opening new credit accounts in your name. This is why it’s important to review your reports for accounts that you did not establish.

If you’ve been a victim of unemployment insurance fraud, it’s important to take action quickly. Below is a guide for where to report it and steps you can take to protect your credit report information.