Scammers targeting unemployment benefits

4/20/2021

By Jim Poole

Scammers are targeting dozens––maybe hundreds––of local employees to illegally claim unemployment insurance benefits.
Although the fraud has hit a few private businesses, it’s more prevalent in schools and government and may lead to further identity theft and credit scams.
“This isn’t one person sitting in a room” said Cobleskill-Richmondville Superintendent Carl Mummenthey, whose district had 55 fraudulent claims as of Monday.
“This is organized.”
The fraud is simple. The scammer has enough pieces of information––name, workplace, address, social security number–-and files a claim with the state Department of Labor.
The employee and/or employer then receives a letter from DOL stating the claim, which seeks benefits for a period when the employee was actually working.
At that point, the employer and employee should act immediately. (See related story.)
If they don’t act, the benefits go to the scammer’s electronic bank account––not to the employee’s address on the DOL letter.
“They may get one or two payments before it’s found out,” said a DOL rep.
One or two payments may not sound like much, but the scope of the fraud is broad––as Cobleskill-Richmondville officials know. The district notifies DOL of each fraud and also alerts employees about possible credit theft.
Middleburgh Superintendent Brian Dunn said his district has received 17 phony claims; MCS contacts its insurance company, which in turn tells DOL.
“It’s hit everyone––custodians, aides, teachers, mechanics, even me,” Mr. Dunn said.
“These days, we need a whole new level of awareness.”
Thirty-five claims have been filed for Schoharie County employees, according to Treasurer MaryAnn Wollaber-Bryan. Her office contacts DOL to verify the validity––or invalidity––of each claim and also contacts the State Police.
“Lately we’ve had quite a few, including eight in one day,” Ms. Wollaber-Bryan said.
Schoharie County Sheriff Ron Stevens surmised that with all the checks the DOL sent out to those laid off because of the pandemic, it might be easier for scammers to slip in phony claims.
“They’re taking advantage of an overworked Department of Labor,” Sheriff Stevens said.
Schoharie County Chamber of Commerce President Bobbi Ryan said few Chamber members have reported false claims, so the scam seems to target public entities.
That may be because there’s much more public information about employees who work for government or schools, Mr. Mummenthey said.
“There are many, many databases about salaries and positions,” he said.
Gail Breen agreed about the array of sources. Well-versed in unemployment law and practices, Ms. Breen is executive director of the Fulton, Montgomery, Schoharie Workforce Development Board.
Some of the data bases may have been hacked five or 10 years ago, she said, “So some of the information [on the DOL letter] may be not quite right. Any little thing should raise a red flag.”
And nowadays, there are other sources besides databases.
“Be very careful about what you share on social media because it’s so easy to access,” Ms. Breen said.
“This is a big business. The money goes in their bank account, not your bank account.”
The Department of Labor is investigating the fraud, according to the State Police, who were contacted Saturday and Monday.