More than $5.4 billion was paid to potentially fraudulent unemployment claims between the start of the COVID-19 pandemic and October 2020 as initial unemployment claims soared last year, according to the Office of the Inspector General at the U.S. Labor Department in a February 2021 report.
While initial claims for unemployment benefits have significantly decreased in the past 12 months, the IRS is cautioning business owners that unemployment insurance fraud is still a cause for concern.
What Businesses Should Watch Out For
According to the IRS, unemployment fraud often involves individuals acting in coordination with or against businesses and financial institutions to get state and local assistance to which they are not entitled. Businesses should be aware of the following scams related to unemployment insurance:
How to Safeguard Your Business From Unemployment Insurance Fraud
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