Michigan unemployment insurance agency sees spike in fraudulent claims, asks residents to be vigilant

Michigan Unemployment Insurance Agency acting director defends self amid criticism

Liza Estlund Olson, the acting director of the Michigan Unemployment Insurance Agency, received criticism from Republicans.

LANSING, Mich - Michigan's unemployment agency wants residents to be on high alert for any suspicious activity involving their personal identification.

The holidays are considered a ripe time for fraudulent unemployment benefit claims to be filed and the 2021 Christmas season proved to be no different.

According to Michigan's Unemployment Insurance Agency, more than 10,000 fraudulent claims have been filed over the past few weeks. The spike coincides with a shutdown of manufacturers during the holiday season, which typically sees an uptick in legitimate claims from workers experiencing an interruption in work hours.

But that surge also means more fraudulent claims, which means an increase in stolen personal information that people may not be expecting.

When the UIA sees a claim come through, it processes the request by mailing a letter back to the address of the individual listed on the filing.

If someone receives a confirmation letter they don't believe they filed for, they're asked to report the activity to the UIA immediately. The agency asks you follow three steps:

Go to Michigan.gov/UIA.
Click on Report Fraud or Identity Theft under the Fraud and Identify Theft topic.
Follow the instructions, complete Form 6349 Statement of Identity Theft and submit it online.

"If the claim is determined to be fraudulent following a detailed investigation, a second letter will be sent by mail that will state the filed claim is null and void," read a release from the unemployment agency.

The UIA reported mistakenly paying out at least $8.5 billion in fraudulent job claims during the pandemic. At a time when a record number of people filed for jobless benefits, criminals took advantage of the surge by filing claims of their own.

MORE: Michigan House panel criticizes state unemployment agency

In response, Gov. Gretchen Whitmer announced the Unemployment Insurance Fraud Response Team, which centralizes coordination between the UIA, the state department, and law enforcement. It's the latest evolution of enforcement that state Attorney General Dana Nessel has been following since 2020.

Her task force has charged 54 Michigan residents with fraud.