Q. Unemployment scams are on the increase, what advice may BBB offer on this marketplace issue?
A. It’s another unwelcome byproduct of the pandemic: crooks are taking advantage of increased unemployment to collect benefits in the names of unsuspecting victims. This unemployment fraud is costing the United States government billions of dollars. BBB warns consumers to be sure to guard your personal information and report suspicious activities as it relates to you and our employer.
How the scam works
Thieves typically get the personal information they need for fake unemployment claims by purchasing it online. One con artist told USA Today that he compiles lists of real people. Then, he pays $2 in cryptocurrency to match each name with a Social Security number and date of birth. This is often all the information he needs to file a phony claim.
Other times, scammers get personal information for fake claims through phishing techniques. By sending fake notifications from financial institutions or government agencies, scammers trick people into sharing their Social Security numbers and other information. Other scammers make cold calls to potential victims and coax them into sharing personal information.