Be Wary of Unemployment Scams

Post On: October 12, 2021

Posted In: Financial Planning Giving Saving

Seasons of vulnerability and increased market volatility are a prime time for scammers on the hunt for victims. Unfortunately, there are two newly arising scams that you should know about, both related to unemployment benefits.

 

The first scam results in the opening of false unemployment claims under an employee’s name and social security number. You may be unaware that a claim was even filed until you receive communication from the state unemployment office, which means that a scammer is using your personal information. If you are contacted about a claim you didn’t file, or you receive an unexpected unemployment payment, you’ll need to act fast to secure your personal information.

 

The funds are often deposited into the scammer’s account, but occasionally, they may end up in yours—and you may be contacted by the scammer. If you receive an unexpected payment, contact your state’s unemployment office to report the incident, and do not respond to any texts or emails asking you to transfer the funds to another account.

 

The second scam involves a phishing email appearing to be from the US Dept of Labor or Unemployment Insurance, stating that bank information was updated and inviting the recipient to log in to confirm. The email will appear legitimate, but the log-in link provided is not authentic. Upon log-in, the banking information is stolen.

 

If you or your employees receive communication like this, do not click on any links in these emails. Instead, open a new browser window, type the real URL in yourself, log into the State Employment website, and check the account for accuracy. If a worker does fall victim to an unemployment scam, it should be reported to identitytheft.gov, a website managed by the Federal Trade Commission. Then, a report should be filed with the local police department. Finally, the scam should be reported to the state in which the incident occurred.

 

If the incident occurred in Pennsylvania, click here to report the fraud. For Florida, click here. For New York, click here. For a full list of all state links, please click here.

 

Ambassador Advisors is honored to assist your organization with employee education, benefit strategies, and more. Please let us know if we can be of assistance, and we’ll do our best to stay vigilant so you can avoid traps like this.

 

Any opinions expressed in this forum are not the opinion or view of American Portfolios Financial Services, Inc. (APFS) or American Portfolios Advisors, Inc.(APA) and have not been reviewed by the firm for completeness or accuracy. These opinions are subject to change at any time without notice. Any comments or postings are provided for informational purposes only and do not constitute an offer or a recommendation to buy or sell securities or other financial instruments. Readers should conduct their own review and exercise judgment prior to investing. Investments are not guaranteed, involve risk and may result in a loss of principal. Past performance does not guarantee future results. Investments are not suitable for all types of investors. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purposes of avoiding penalties that may be imposed by law. Each tax payer should seek tax, legal or accounting advice from a tax professional based on his/her individual circumstances.
This material is for informational purposes only. Neither APFS nor its Representatives provide tax, legal or accounting advice. Please consult your own tax, legal or accounting professional before making any decisions. Information has been obtained from sources believed to be reliable and are subject to change without notification. The information presented is provided for informational purposes only and not to be construed as a recommendation or solicitation. Investors must make their own determination as to the appropriateness of an investment or strategy based on their specific investment objectives, financial status and risk tolerance. Past performance is not an indication of future results. Investments involve risk and the possible loss of principal.

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