Paperwork referencing unemployment benefits are showing up in mailboxes to the surprise of residents of Union County and individuals across the country. The forms above were sent to a Marysville resident who did not file any unemployment claims. Portions of the image divulging personal information have been purposely obscured. Scammers took advantage of the rush for aid created by the pandemic to make fraudulent claims. (Journal-Tribune photo by Chad Williamson)
Union County residents are on a long list of people nationwide falling prey to the recent and widespread reports of tax fraud.
Since the first of the year, dozens of area residents received letters or tax forms in the mail stating they filed for unemployment benefits in 2020 when no such claims were made.
According to local law enforcement, reports of these fraudulent unemployment claims began to ramp up the week of Jan. 18.
“We really started to see several cases last week and the week before, residents calling to let us know they received a 1099 form when they never filed for unemployment benefits,” said Chief Deputy Tom Morgan with the Union County Sheriff’s Office. “In most cases we’ve seen either those forms or other pieces of correspondence appear in the mail.”
The state sends out forms for taxable unemployment benefits which people then have to report on their taxes. After a record number of unemployment claims were made in 2020 during the pandemic, some residents are receiving letters or 1099-G tax forms indicating they filed for the benefits last year, either through traditional unemployment or Pandemic Unemployment Assistance programs when they didn’t.
Though the Union County reports have mostly been based on letters and tax forms in the mail, residents may also watch out for US Bank ReliCard funds that they were not expecting or notifications from their employers that the Ohio Department of Job and Family Services is inquiring about benefits claims.
“These types of fraud cases and certain types of identity theft are tough to track,” Morgan said. “But we do find them and usually find that the perpetrators are often local.”
Morgan said the Sheriff’s Office has a detective working on the fraud claims and the investigation is ongoing but the UCSO asks residents to keep a close eye on their credit reports and bank information.
“That’s the first thing and often banks have measures in place to flag suspicious activity but it’s a good idea to keep an eye on accounts,” he said. “Report the information to law enforcement and if you receive one of the forms or any correspondence suggesting fraud, the first thing you want to do is contact the Ohio Department of Job and Family Services and the Ohio Attorney General’s Office’s or visit the website.”
Although the AG’s office can’t resolve the unemployment benefits directly, Morgan said it’s a good idea to report cases of identity fraud to the AG’s identity theft unit—especially when claims are this widespread.
Morgan added that the Union County Sheriff’s Office has received 23 reports of fraudulent claims being made. The number has surpassed 60,000 statewide.
People receiving the letters or forms can also report it to their bank and freeze accounts, cards and online transaction activity.
ODJFS issues nearly two million 1099 forms each year in the month of January. Letters have to go out to residents by Jan. 31 so residents may still see forms arriving.
With claim numbers being at a record high, ODJFS has initiated new measures for residents to take if they encounter fraud claims.
“ODJFS has created a new online portal that provides a direct way for Ohioans to notify the agency if they believe their identity was stolen and used to file a fraudulent unemployment claim,” according to a statement released by ODJFS. People can visit unemployment.ohio.gov or call (833) 658-0394. “ODJFS will issue confirmation emails to everyone who files a report with information about identity theft and protection.”
Fraud victims can fill out a form online and receive the confirmation email, then ODJFS will investigate the claim and, if fraud is determined, issue a correction to the IRS. They will then receive a corrected 1099-G form. According to the IRS, if fraud victims don’t receive corrected forms in time to file taxes, they should file them as normal without reporting the fraud.