Los Angeles City Attorney Mike Feuer has issued a new COVID-19 alert warning people about an identity theft scam to fraudulently collect unemployment benefits. Perpetrators use stolen Social Security numbers and other personal information to apply for and receive unemployment benefits in victims’ names. Victims may not learn that they were targeted until they apply for unemployment themselves or receive a bill from the IRS for taxes owed on benefits never received.

“Since the pandemic erupted, we’ve fought back against scammers trying to take advantage of people who may be scared, isolated and more easily victimized,” Feuer said. “In this latest scam, not only are hundreds of millions of dollars being stolen nationwide, but people’s identities are being taken without them knowing it. All this is adding extra strain to our state’s over-burdened unemployment network at a time when record numbers of Californians desperately need benefits.”

According to the Federal Trade Commission, scams targeting unemployment benefits are affecting tens of thousands of people nationwide. Although the scam can take many forms, it typically involves a perpetrator filing an unemployment claim using a stolen identity. Benefits – the state of California frequently pays by issuing debit cards – are mailed to them at a home address or business. The scammers may buy already stolen identities online or steal them through email and text phishing attacks, or by cold-calling victims claiming to be government officials or potential employers. Although it may sound simple, the scam may be the latest from a sophisticated West African fraud ring that uses identities stolen in prior data breaches, such as the 2017 Equifax breach, Feuer said.

Many victims of the unemployment scam don’t know they’ve been victimized until they try to file a claim themselves or get told by their employer that a claim has been filed, even though they are still employed. Some don’t learn that their identities have been stolen until the IRS informs them next year, through a 1099-G form, that they owe taxes on the unemployment benefits in their name. 

The public should be aware of methods commonly used to steal personal information. They include phishing emails and texts claiming to be from EDD or another agency that offers assistance in filing for unemployment. The message might say a claim is incomplete and demand that you provide your Social Security or credit card number before it can be finalized.

Also beware of scam websites claiming to be able to help file and collect unemployment benefits quickly. In California, unemployment claims are only accepted online by visiting edd.ca.gov/unemployment.

Phone and text scams claiming that unemployment benefits have been suspended until personal information is provided are also prevalent. EDD will never contact a claim recipient through text.

People who suspect they are the victim of an unemployment benefits scam should call the EDD Fraud Hotline at (800)229-6297, or report it online by visiting edd.ca.gov. Those who are victims of the scam should notify the Internal Revenue Service by filing an identity theft affidavit (Form 14039) by visiting irs.gov. For information, visit https://identitytheft.gov..