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Frequently Asked Questions - Identity Verification

How are fraudulent claims prevented?


The department and employers work together to prevent fraudulent claims. When an individual files a UI claim, we ask for several identifying pieces of data. In addition, employers assist the department in identifying whether the individual filing the claim is the correct individual. We notify the last employer, former employers, and current employers when a claim is filed.

 

The following actions help us prevent fraudulent claims:

Notice of Claim Filed and Request for Separation Information (LB-0810) is sent to the last employer when a UI claim is filed.
Employer Notice of Claim Filed card (LB-0502) is sent to all base period employers after a claimant files an initial claim.
A report is sent to employers each quarter stating benefits charged to their experience rating.
The department cross matches employee wage files against a database of UI claimants.
The department cross matches UI claimants’ Social Security numbers against those of inmates incarcerated in Tennessee’s prison system.

 

UI benefits are taxable, and we report the amount of benefits paid to the Internal Revenue Service. This is an additional safeguard.

As an employer, what is the most important action I can take to help prevent fraud?

 

A tremendous number of fraudulent claims would be caught if employers would simply report a newly hired employee to the Tennessee Department of Human Services as soon as the new worker is hired. In fact, Tennessee Law §36-5-1101 to §36-5-1108 states employers must report their newly hired or rehired employees within 20 days of the date they are hired. See instructions for new hire reporting on the Department of Human Services Web site at https://www.tnnewhire.com/.

What is the department doing to prevent social security numbers that have been used fraudulently from being used fraudulently again?


When the department receives information that an identity theft has occurred, we flag the social security number used to file a UI claim. If anyone attempts to use that social security number again, the Department will request additional identifying information from the individual filing the claim. If the true owner of the social security number is not the individual filing the claim, we determine the true owner and deny a claim to the imposter.