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#2251245 - 03/25/21 05:54 PM Potential Umemployment Fraud
ACBbank Offline
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We have a client that had twelve ACH credits which were originated by the State of NJ - Unemployment which totaled over $6,000 (Over a two day period). Has anyone seen a similar pattern before? If so I'd be interested in hearing what your conclusions were. I'm having a hard time understanding how this could be legitimate given the number of transactions over a two day period. We've reached out to the customer but have yet to receive a response.

It's not a lot of money but it is over the $5,000 threshold which is why we are looking into it further.
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#2251249 - 03/25/21 06:20 PM Re: Potential Umemployment Fraud ACBbank
BrianC Online
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Have you looked closer at the ACH batch to see if all the payments are payable to your customer? A sure indicator of employment fraud and your customer being a money mule is if the payments are for "unemployed" folks who are not owners on the account. Also, does your customer actually live in New Jersey? Receiving unemployment from a different state is certainly a red flag.
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#2251250 - 03/25/21 06:22 PM Re: Potential Umemployment Fraud ACBbank
BrianC Online
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Also, have you read FinCEN's advisory on unemployment fraud? Your situation certainly hits on a number of the red flags in that advisory.

https://www.fincen.gov/news/news-re...insurance-fraud-during-covid-19-pandemic
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#2251252 - 03/25/21 06:28 PM Re: Potential Umemployment Fraud ACBbank
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I did look at the batch and the customer and ACH individual names are exact matches and our customer does live in NJ. That's why I'm a confused about these transactions.
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#2251254 - 03/25/21 06:33 PM Re: Potential Umemployment Fraud ACBbank
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While I don't know a lot about unemployment - could some of these be back payments?
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#2251256 - 03/25/21 06:34 PM Re: Potential Umemployment Fraud ACBbank
ACBbank Offline
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Possibly Skittles. I did see a Unemployment payment in November 2020 for $160 and they stopped until the recent spike. I'm not familiar with how unemployment works and our Fraud Department is slammed at the moment.
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#2251280 - 03/26/21 12:34 PM Re: Potential Umemployment Fraud ACBbank
praBSA Offline
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Here in New York, I have been seeing people getting dozens upon dozens of back payments at once triggering a bunch of alerts. Your customer is located there and the name on the ACH matches. I have been clearing these alerts unless there are other circumstances that warrant further review.

One particular case I reviewed in depth was a customer receiving payroll and UI at the same time. What I did notice is that at the time businesses were shut down here, his payroll deposits went down by about $500 a week, he was only receiving a base UI benefit of about $150 bucks, plus the $300 bonus. Partial unemployment benefits from reduced work explained this away.

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#2251282 - 03/26/21 12:43 PM Re: Potential Umemployment Fraud ACBbank
edAudit Offline
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You are here
We have a client that had twelve ACH credits which were originated by the State of NJ - Unemployment which totaled over $6,000,


Back payments (seen it in NY)
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#2251283 - 03/26/21 12:50 PM Re: Potential Umemployment Fraud ACBbank
ACBbank Offline
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Thank you everyone.
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#2251304 - 03/26/21 03:37 PM Re: Potential Umemployment Fraud ACBbank
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Ours have been customers who received back payments, and they were legit.

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#2251324 - 03/26/21 06:36 PM Re: Potential Umemployment Fraud P*Q
mkp122 Offline
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Any one have thoughts on business owners of restaurants, nail salons, etc receiving unemployment? We have several customers receiving unemployment when we know their business is opened.

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#2251328 - 03/26/21 07:15 PM Re: Potential Umemployment Fraud ACBbank
BrianC Online
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They may still qualify for reduced benefits if their hours have been reduced.
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#2251329 - 03/26/21 07:21 PM Re: Potential Umemployment Fraud ACBbank
Skittles Online
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I know my brother drew unemployment even thought his business stayed open. In order to keep the business viable and pay his employees he stopped drawing a paycheck for many months.
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