The Minnesota Unemployment Insurance (UI) Program operates a continuous investigation program to detect and prevent administrative errors, benefit overpayments, and tax irregularities. These activities protect the UI trust fund by ensuring that all employers are assessed the proper tax rate and all benefits are paid only to eligible applicants as defined by Minnesota law. Violations by applicants and employers may be criminally prosecuted as felony theft under the fraud provisions of the law.

You can help prevent fraud by reporting potential violations to the UI Program by using the online Fraud Report. When completing the Fraud Report:

• Provide as much information on the form as possible.
• Your contact information can be helpful in the investigation; however, you are not required to provide it. Your identity will be kept confidential if you prefer.
• Be aware that you will not be updated on the status of the investigation.

Applicant Fraud: An Unemployment Insurance Specialist will follow up on all potential violations from the public. An example of a potential violation is an individual that is working and not reporting hours or earnings during the same period of time he/she is receiving unemployment insurance benefits.

Employer Fraud: An Unemployment Insurance Specialist will investigate potential tax avoidance schemes. Common schemes include the designation of employees as independent contractors and the creation of shell corporations.

Detecting and Recovering Benefit Overpayments: The Minnesota Unemployment Insurance (UI) Program actively pursues collection efforts based on the amount of debt owed.