Reporting Fraud

Unemployment benefits identity (ID) fraud is a serious problem that can potentially delay out-of-work Texans from getting the benefits they need and betray the taxpayers of Texas. Fortunately, TWC has strong protections to identify, track, and lock down ID fraud attempts, protecting Texas workers and the integrity of the Texas unemployment system. In most cases, we stop the fraud before a single dollar in benefits is paid out. If you have information that an unemployment claim was filed using a stolen identity, you should report the ID fraud claim on TWC's online fraud portal. 

Employers

Employers may receive a claim notice from TWC requesting information on a claim. If you receive a notice for an employee who is still working, or for a person who never worked for you, please respond to the notice immediately and indicate the claim was filed by an imposter. 
If your employee receives a notice for an unemployment claim they did not file, advise your employee to report the ID fraud claim using TWC’s online fraud portal.

Individuals

If someone filed a claim using your Social Security number (SSN), you should report the ID fraud claim on TWC’s secure online fraud portal. 

• Report ID Fraud
• Reportar Fraude de Identidad

You can help prevent fraud and protect your identity. If you are contacted about your benefits, remember that a TWC specialist will NEVER ask for:

• Credit card information
• Full bank account number
• A fee or payment to assist with filing for unemployment benefits

Individuals who are the targets of unemployment identity fraud have usually had their information exposed somewhere other than TWC. Treat your TWC account and all accounts like you would your bank account. Take steps to secure your identity online by practicing Internet security best practices.

TWC is authorized by the Texas Labor Code to investigate allegations of fraud, waste and program abuse involving TWC programs. Individuals can report suspected fraud, waste, or program abuse in any of the following programs:

• Adult Education & Literacy
• Apprenticeship
• Career Schools & Colleges
• Child Care Services
• Choices
• Civil Rights
• Foreign Labor Certification
• Labor Law
• Labor Market & Career Information
• Noncustodial Parent Choices
• Rapid Reemployment Services
• Self Sufficiency
• Senior Community Services Employment Program
• Skills Development
• Supplemental Nutrition Assistance Program (SNAP & ET) Employment & Training
• The Criss Cole Rehabilitation Center
• The Independent Living Services Program for Older Individuals Who Are Blind
• The Temporary Assistance for Needy Families (TANF) Program
• Trade Adjustment Assistance
• Unemployment Insurance Benefits
• Unemployment Insurance Tax
• Vocational Rehabilitation Services
• Wagner-Peyser Employment Services
• Workforce Investment Opportunity Act (WIOA) Adult, Dislocated Workers and Youth Employment Training and Services
• WorkInTexas.com
• Work Opportunity Tax Credit

Fraud is a willful act or course of deception, or an intentional concealment, omission, or perversion of truth, with the intent to obtain a material benefit or service for that person or another person, for which the person may not be eligible. 

Waste is any practice that a reasonably prudent person would deem careless or that would allow inefficient use of resources, items or services. Waste includes incurring unnecessary costs because of inefficient or ineffective practices, systems, or controls.

Abuse is the intentional, wrongful or improper use or destruction of state resources, or a seriously improper practice that does not involve prosecutable fraud.  Abuse may include misapplication or misuse of public resources.

Theft is the unlawful appropriation of property with the intent to deprive the owner of that property.

Reportable violations include, but are not limited to, the following examples:

• Obtaining unemployment insurance benefits by misrepresentation
• Obtaining child care benefits by misrepresentation
• Improper tax avoidance by nondisclosure or misrepresentation of facts
• Authorizing an improper claim for others
• Authorizing ineligible participation in TWC programs
• Authorizing payments to ineligible claimants/clients
• Accessing agency information (e.g., wage records) for non-business reasons.
• Conflict of interest issues
• Extorting money or accepting favors from contractors, clients, or vendors
• Failing to follow applicable rules, regulations, policies, procedures, and laws
• Improperly disclosing information
• Misusing State-owned property (computers, equipment, telephones, etc.)
• Nondisclosure of material facts
• Overstating travel expense reimbursement claims
• Receiving kickbacks from contractors, clients, or vendors
• Using State supplies for personal use
• Using State telephone lines for personal calls to avoid long distance charges
• Using unauthorized computer programs on State-owned computers
• Installation of State-owned computer software on home computers
• Violating contract or grant procedures
• Falsifying financial records to conceal theft of money or property
• Intentionally misrepresenting the costs of goods or services provided

TWC may refer investigative results to the appropriate district or county attorney. TWC may also provide this information to the United States Department of Labor and the United States Department of Justice or other federal or state agencies.

Any documents you provide to TWC, including emails and faxes, as well as any information transcribed by TWC staff based on verbal communication with you, become part of official agency records upon receipt by TWC (Government Code 441, V.T.C.A. and the Texas Workforce Records Retention Schedule approved by the State Library and Archives Commission on January 4, 2002, as amended, as well as the Public Information Act, Government Code, Chapter 552, V.T.C.A.) These records cannot be altered or destroyed (Texas Penal Code, Chapter 37, V.T.C.A.), except as permitted by TWC's Records Retention Schedule.

• Unemployment Benefits ID Fraud
• Avoiding Scams & Schemes