Nearly every day, Amy Wakser, owner of Arizona Bread Company in Scottsdale, finds more letters from the Arizona Department of Economic Security trying to verify employment history for people seeking unemployment benefits.
The problem is, nearly all the letters came for people who never worked for Wakser at her restaurant.
Due to the pandemic, Wakser did have to lay off some of her employees. However, since June, Wakser said she has received multiple letters for at least 20 people who never worked for her. The letters contain information on when the person claims they last worked, and have all been sent to Wakser’s restaurant address.
"Every time I would open up the envelope, see the name didn't recognize it, you know, ask my husband who runs the wholesale side of our business, and, you know, I would reply back that this individual never worked for me,” Wakser said.
The letters could be from fraudulent claims
Since at least June, the Arizona Department of Economic Security (DES) has warned of tens of thousands of claims being filed fraudulently for unemployment benefits, specifically Pandemic Unemployment Assistance (PUA) claims.
However, DES said in a statement to 12 News on Wednesday, the letters Wakser is getting, which are called “Notice to Employer” letters, could be from criminals trying to collect unemployment benefits fraudulently.
“Individuals committing UI fraud are evolving and becoming more sophisticated. We will continue to identify suspicious activity among claims while working diligently to ensure eligible claimants continue to receive critical assistance,” A DES spokesperson said in a statement.
In the statement, DES adds if employers receive such letters and the person named in the letter did not work for them, they should mark it on the letter, sign the back, and send it back to DES. Adding, the employer should report the suspected fraud here.
Arizona unemployment by the numbers
As of latest reports, DES has paid more than $13.1 billion in unemployment benefits since the beginning of the pandemic.
Currently, 1.6 million Arizonans are receiving PUA benefits, and more than 460,000 are receiving UI benefits.
Data shows DES is paying out $124 million more every week compared to this time in 2020.