UI Fraud is a crime which affects everyone. It drives up the cost of UI taxes for businesses and causes frustration for law-abiding employers and workers. The Montana Department of Labor and Industry takes UI Fraud very seriously; all reports of potential, alleged, or suspected fraud are thoroughly reviewed and investigated accordingly. Those found to have committed UI fraud are subject to penalties and/or criminal prosecution.
If you suspect a person (Claimant) or a business (Employer) is committing UI fraud, please select the appropriate link to the right, fill in the fields and select “Send Now”. You may also contact our fraud investigator by phone at (406) 444.0072 or toll free at (888) 556.4677; by email at email@example.com; or, by fax at (406) 444.6651. No matter how you report information or your suspicions, YOU MAY REMAIN ANONYMOUS if you wish.
We thank you for your efforts to help combat UI fraud and abuse in Montana; you are a VERY important source of information about claimants and employers committing UI fraud. Please understand due to confidentiality restrictions, we will not be able to advise you any outcome of any investigation we conduct.
Types of Fraud
Common Types of Claimant Fraud
A person, filing for benefits, who currently is or has:
- Reported they looked for work when they didn’t
- Claimed to be available for work when they were not, (i.e. on vacation, injured, etc.)
- Inaccurately reporting hours and or earnings
- Is also receiving workers’ compensation
- Working while collecting benefits and not reporting earnings or hours worked
- Is falsifying or knowingly failing to disclose required information
- Is not reporting cash wages earned
- Is not reporting payments from a former employer (i.e. “back pay for banked hours” or pension/retirement payments)
- Committing identity theft by using another person’s identity to file a claim for benefits
Common Types of Employer Fraud
An employer who, has in the past or currently is:
- Aiding someone in filing a fraudulent claim
- Coercing, persuading, or inducing an employee to file a false claim
- Providing false information regarding a worker’s separation from employment
- Failing to report a separation from work by an employee
- Falsifying or knowingly failing to provide accurate information
- Misclassifying an employee and the work performed (i.e. labeling the employee as an Independent Contractor (IC) when the employee does not have an IC Exemption Certificate)
- You believe has employees but is not reporting those employees to UI
- Not reporting wages earned by an employee, or under reporting an employee’s wages
Surprisingly enough, many who commit fraud will boast or brag about it or even speak openly about it. Comments or conversations which are heard where someone is alluding to committing fraud should be reported.
You may know someone who is receiving benefits yet they are working. While this may be legitimate employment which is being reported and does not disqualify one from receiving benefits, it also may not be getting reported. These instances should be reported so they may be reviewed and assessed. Often crimes go unsolved or unknown because witnesses do not want to get involved. UI Fraud hurts everyone, you can report it anonymously.
You may know of or even work for an employer who allows people to “bank” hours to be paid later during lay off times while the employees are collecting benefits. While the payment for “banked” hours may not disqualify the worker from receiving benefits, it does need to be accurately reported.
You may know of or suspect someone of using another’s identity to file for benefits. Not only is this fraud, but it is also identity theft and needs to be reported.
White collar crimes such as UI Fraud are often very complex. Even if you have just a suspicion someone is committing fraud, we implore you to report it. We will review all pertinent information and take appropriate action.
UI Fraud Alert from the Office of Inspector General at the U.S. Department of Labor