What counts as unemployment insurance fraud
Unemployment insurance is run by the Department of Labor, with states handling eligibility and day-to-day payments. Common schemes include:
- Claiming benefits while working
- Claims filed with stolen identities
- Claims filed in several states at once
- Insiders approving fake claims
Honest mistakes and disputes over a single bill are not fraud. Fraud means someone knowingly took money they were not entitled to.
Where to report it
| Contact | Handles |
|---|---|
| Your state unemployment agency | States pay and investigate unemployment claims |
| Department of Labor OIG hotline | Large-scale or organized unemployment fraud |
| America.gov/fraud (WHIP reward portal) | Required route if you want a WHIP award of $10,000–$30,000 |
Because states run unemployment insurance day to day, your state agency is often the fastest route. Each state's page in the fraud case database lists its reporting contacts.
Can you get a reward?
Yes. Department of Labor programs are covered by the federal Fraud Whistleblower Incentive Program (WHIP): a written tip that leads to criminal charges can earn $10,000–$30,000. For larger frauds, the False Claims Act pays 15–30% of what the government recovers.
- WHIP: submit in writing at America.gov/fraud, include your contact details, and do not take part in the fraud. Step-by-step guide.
- False Claims Act: a sealed lawsuit filed through a lawyer; worthwhile mainly for frauds of $1 million or more. Compare the routes.
- State laws: many states have their own false claims acts. Check your state's page in the case database.
Estimate your own case with the reward calculator.
What to include in your report
- Who: names of people and businesses, addresses, provider or license numbers if you have them
- What: the service, benefit or loan involved and what was wrong with it
- When and how often, and roughly how much money
- How you know: what you saw, and any documents or photos you are allowed to share
Where unemployment insurance fraud is being prosecuted
States with the most Unemployment announcements in our database since January 20, 2025; the largest amount named is $30M (alleged loss):
| State | Announcements |
|---|---|
| Maryland | 23 |
| California | 18 |
| Massachusetts | 18 |
| Pennsylvania | 15 |
| Virginia | 14 |
| New York | 14 |
| Michigan | 13 |
| Georgia | 9 |
Recent Unemployment fraud cases
Source: U.S. Department of Justice press releases. Charged cases are allegations. All 212 Unemployment announcements
Frequently asked questions
Where do I report unemployment insurance fraud?
Your state unemployment agency: States pay and investigate unemployment claims. Department of Labor OIG hotline: Large-scale or organized unemployment fraud. America.gov/fraud (WHIP reward portal): Required route if you want a WHIP award of $10,000–$30,000.
Can I get a reward for reporting unemployment insurance fraud?
Yes. Department of Labor programs are covered by the federal Fraud Whistleblower Incentive Program (WHIP): a written tip that leads to criminal charges can earn $10,000–$30,000. For larger frauds, the False Claims Act pays 15–30% of what the government recovers.
Can I report unemployment insurance fraud anonymously?
Most inspector general hotlines accept anonymous tips. To be paid a WHIP award, though, you must give contact information and disclose your identity to the Justice Department before payment; you can stay anonymous during the process only through a lawyer.
How common is unemployment insurance fraud prosecution?
Our database has 212 Justice Department announcements involving unemployment insurance since January 20, 2025, counting each press release separately.