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Fraud
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1. I have information about someone who is collecting unemployment insurance
benefits and working for cash on the side. Who do I contact to report the fraud?
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Individuals who have information that someone is defrauding one of EDD's programs,
such as Unemployment Insurance, State Disability Insurance or Tax, should:
The Department considers the information confidential and will protect the identity of the person reporting fraud.
For more information about the Department's fraud detection and deterrence
efforts, visit the following sites:
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2. How are fraudulent claims prevented?
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The EDD and employers work together to prevent fraudulent claims.
When an individual files a UI claim, we ask for several identifying pieces of data.
In addition, employers assist EDD in identifying whether the individual filing
the claim is the correct individual. We notify the last employer, former
employers and current employers when a claim is filed.
The following documents help us prevent fraudulent claims:
- Notice of Claim Filed, DE 1101CZ is sent to the last employer when a UI
claim is filed.
- Notice of Wages Used for Unemployment Insurance Claim, DE 1545 is sent to
base period employers when benefits are paid.
- Benefit Audit, DE 1296B is sent to an employer who reports wages for a
social security account number during the same calendar quarter that UI benefits
were paid under that social security account number.
UI benefits are taxable and we report the amount of benefits paid to the
Internal Revenue Service. This is an additional safeguard.
Review Benefit Audit Information to find out more about the
benefit audit process.
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3. What should I do if my former employee has turned down job opportunities?
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An employer who wants to report this information may submit the following
specific details in writing:
- Former employee's name and social security account number
- Date the job was offered
- Name of the individual who offered the job
- Wages, hours, and working conditions of the job offered
- Whether or not the job was permanent
- Date the job was refused
- Reason the former employee gave for refusing the job
Employers who want a written response from the Department regarding the
claimant's eligibility for benefits must submit the facts, in writing,
within 10 days of acquiring the information. Send the information to the
EDD address shown on the Notice of Claim Filed, DE 1101CZ or Notice of
Wages Used for Unemployment Insurance Claim, DE 1545.
Employers may also contact EDD. However, if you
telephone the Department with this information you will not receive a
written response regarding the claimant's eligibility for benefits.
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4. What is the purpose of the PIN?
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The PIN protects your privacy and prevents unauthorized access to your confidential
claim information.
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5. What information is used to create a PIN?
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You must have a UI claim to create a PIN using the automated telephone system.
The automated telephone system requires specific information to verify the caller's
identity and create the PIN.
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6. I already responded to a Department notice about one of my employees.
Why did I get a Request for Additional
Information, DE 1326ER? |
You received the DE 1326ER because there is a
question as to the identity of the individual who filed the UI claim. The
Department needs your help to validate claim filing information provided by
that individual. Mail the completed form (and any other additional documentation)
within ten days of the mailing date of the DE 1326ER. The information you provide
will be used to ensure that all charges made against your account are correct. |
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7. Why am I receiving duplicate
Request for Additional Information,
DE 1326ER forms? |
When a claim is filed the DE 1326ER form is mailed to
base period and last employers. Our system recognizes duplicate employer
names and will not mail the DE 1326ER when the employer names are an exact match.
However, if the individual who filed the UI claim did not provide the Department with
exact employer(s) name(s) our system will mail a DE 1326ER to each employer name.
For example:
- An individual reports that he/she worked for John Brown and Company.
- The employer’s correct name is Brown and Company.
In this example, the employer would receive a duplicate DE 1326ER because the employer
names are not an exact match. Our system would mail a form to each employer name;
one to John Brown and Company and one to Brown and Company
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8. Why is my State income tax refund check being taken
by EDD to repay an overpayment?
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A UI claim was filed and benefits paid using your
social security number. Benefits should not have been paid and an overpayment
occurred. The income tax refund is being taken to repay this overpayment.
If you did not file a UI claim contact the Department
immediately. A fraudulent UI claim may have been filed using your identity information. |
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9. What is EDD doing to prevent social security numbers
that have been used fraudulently from being used fraudulently again?
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When EDD receives information that an identity theft
has occurred, we flag the social security number used to file a UI claim.
If anyone attempts to use that social security number again, the Department
will request additional identifying information from the individual filing
the claim. If the true owner of the social security number is not the
individual filing the claim, we determine the true owner and deny a claim to the imposter.
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10. Will my reserve account be charged for fraudulent UI
claims? |
If you are a tax rated employer, any incorrect charges
will be removed. If you are a reimbursable employer, your account is charged
for any payments that were issued.
Questions regarding your reserve or reimbursable account should be directed to
the telephone numbers listed below:
- Tax rated employers may call the Contribution Rate Group at (916) 653-7795
- Reimbursable employers may call the Reimbursable Accounting Group at
(916) 653-5846
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11. Why did I receive a Request for Identity Verification, DE 1326C?
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This notice was sent because the Department has:
- been unable to verify your identity using the information you provided when you filed
your UI claim, or
- received information that your identity may have been compromised
As a result, further identifying documents are required. Whenever there is a
question of correct identity, the Department requires identifying documents to
ensure benefits are paid only to those who are legally entitled to receive them.
Failure to provide the requested documentation may result in a denial of benefits.
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12. Why did I receive a Request for Information, DE 1326E,
I have never filed a UI Claim?
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You are receiving this notice because a UI claim was filed using the social
security number documented on the notice and there is a question about the
identity of the individual who filed the claim.
Complete the form and provide the documentation that is being requested to
verify ownership of the social security number. You are not required to
provide the requested information, but Department needs your assistance
and cooperation to ensure benefits are paid only to those who are legally
entitled to receive them.
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