UI Fraud and Identity Theft – What Employers Can Do to Protect Themselves and Their Employees

UI imposter fraud occurs when someone steals your employees’ employment and/or personal information and uses it for personal gain by illegally obtaining UI benefits. The EDD actively investigates cases of UI imposter fraud and is committed to taking the steps necessary to protect the integrity of the UI Fund and preserve the benefits for legitimate unemployed workers in need. UI imposter fraud occurs when someone steals your employees’ employment and/or personal information and uses it for personal gain by illegally obtaining UI benefits. The EDD actively investigates cases of UI imposter fraud and is committed to taking the steps necessary to protect the integrity of the UI Fund and preserve the benefits for legitimate unemployed workers in need. 

To minimize potential fraud and protect your employees and your UI reserve account from improper charges and a potentially higher tax rate, we urge employers to carefully review any EDD statement and/or notice and respond as directed in a timely manner.

1. If you receive any EDD notices that an employee has filed a UI claim for benefits, but the employee still works for you and has informed you that he or she did not file that claim, please immediately return the notice to EDD informing us of these critical facts so we can take action.
2. If you have already returned the notice before learning that your employee did not file a claim for benefits, please take a few minutes to file an online fraud report

Both of these actions will prevent UI benefits from fraudulently being paid and provide critical evidence needed by EDD for pursuing criminal prosecution.  If no response is received from employers within 10 days of the notice, the EDD is required to determine eligibility for benefits based only on the information provided by the claim applicant and any other available facts.

To help employers in this important role, the EDD does provide an electronic option for responding to EDD information requests with a system known as SIDES (State Information Data Exchange System).  Using SIDES can get notifications to you faster, allowing you more time to gather information and respond timely, as well as help reduce errors and administrative costs. For more information, visit the following site: State Information Data Exchange System

In addition, you can help your employees who may be victims of identity theft by:

1. Providing them with the brochure titled “Protect Your Identity and Stop Unemployment Insurance Fraud” available here
2. Connecting them with information available through the California Office of the Attorney General here

We are grateful to our employer partners to help us in this committed effort to fight fraud.