Scammers using real information to file fake unemployment claims in Kentucky

LOUISVILLE, Ky. (WDRB) -- The COVID-19 pandemic has put thousands of Kentuckians out of work, but scammers are keeping busy.

From fraudulent unemployment claims to stolen identities, scammers are trying to cash in on the pandemic, state and local officials said.

"There's nothing on that form to make you think that it was fraudulent," said Jeff Hamilton, director of finance and operation at Walden School. "It's your full name, social security number, your dates of hire."

Hamilton said Walden has seen a lot of unemployment claims lately.

"I'm almost afraid to open the mail," he said, "cause every day it seems like there's another envelope from the unemployment."

Hamilton's concerns of fraud are fueled by unemployment claims that include names of people who have not been laid off, former employees or people with no connection to the school.

"People that we've never heard of that claim they've been laid off because our business is closed," he said.

Both the school and employees have received fraudulent unemployment claims over the past few months, Hamilton said. In some cases, it has caused a lot of stress.

"We had (a) panicked phone call one weekend from an employee wanting to know whether they still had their job, which was very interesting," Hamilton said. "It turned out they had gotten a notice that an unemployment claim had been filed using their name."

Gov. Andy Beshear on Tuesday assured employers that the fraudulent claims are not being paid.

"We are detecting and denying these fraudulent claims," the governor said. "... It's just kind of an automatic response of what the benefits would be if they could prove their identity, which they have not."

That addresses a big concern for some employers.

"Any of these claims that go at a maximum, we're liable for $569 a week," Hamilton said. "Simple math is, if all nine fraudulent claims got paid, (it) would be equivalent to three teacher salaries."

The process of dealing with possibly fraudulent claims, Hamilton said, still requires attention, detail and several steps.

"You get a notice that an employee has filed a claim," he said. "You send back — either you acknowledge that you are disputing the claim, and then you get something back that says either the claim is valid and is going to get paid or is not going to get paid. I'll mark them as fraudulent claims but never get anything back."

Hamilton said Walden School can not afford to take a loss because of a scam.

"We operate on thin margins; we barely get by," he said. "Because we are a not-for-profit, we elect to be a reimbursing employer, which means we reimburse the state for whatever claims they pay."

If you suspect you've received a fake claim, contact the state at 502-564-2387.