Page 36 - BusinessWest April 14, 2021
P. 36

Staying Ahead of the Scams
Instances, Intensity of Fraud Are on the Rise
WBy Julie Quink
ith the continued intensity created
by the COVID-19 pandemic, busi-
ness owners and individuals have continued to be victims of fraudulent activ- ity as the scams and schemes are continually changing and increasing in number.
At a time of significant economic stress and uncertainty, the barrage of ever-changing fraudu- lent attempts and attacks becomes increasingly difficult to manage and prevent. Fraudsters have also become very creative in their methods of gathering sensitive information to commit fraud, so it becomes increasingly difficult to predict what might be coming next in the form of an attack.
Since the onset of the pandemic, these schemes have continued to include filing fraudu- lent unemployment claims. As practitioners, we have also noticed an increase in stolen identities, whether it be by the interception of documents containing personal information or through online access.
As professionals who work with clients to implement best practices and detection tech- niques, we fall victim to fraud attempts as well. The most recent fraud attempts include con- tinued false unemployment claims and theft of identities through mail interception.
Fraudulent Unemployment Claims
The filing of fraudulent unemployment claims is not a new fraud scheme. However, the repeat- ed attempts at compromising employee data and filing of fraudulent
claims in other states has
increased.
Fraudsters have taken
to heart the saying, ‘if at
first you don’t succeed,
try, try again.’ Some busi-
nesses have seen repeat
attempts at fraudulent
claims filed against the
business using the same
employees but citing dif-
ferent reasons for filing
for unemployment, such as break in service or lack of work.
Further, claims are being filed for employ-
ees in different states. The fraudster is using an employee’s information to file in a state in which the employee does not live or work to gain access to unemployment benefits in the state where they live. It has become a vicious cycle.
States have tightened controls and verifica- tions to try to manage these fraudulent claims, but the tightening of controls comes with a cost.
Employees who have been victims of fraudulent claims in the past may have a more challenging time filing for unemployment as their account has now been flagged. The ease of filing online for these people has now become complicated
“
include continued false unemployment claims and theft of identities through mail interception.”
and time-consuming as they try to navigate the unemployment system.
The continued monitoring of a business unemployment account to prevent and detect fraudulent activity and responding to fraudulent claims can be time-consuming. If fraudulent claims are paid against an employer account, it can impact the employer’s experience rate and unemployment
account if not iden- Scams
tified quickly. Continued on page 40
 The most recent fraud attempts
           Richard F. Burkhart, CPA and Salvatore J. Pizzanelli, CPA, JD, PFS
The talented team at Burkhart Pizzanelli
Accounting
Julie M. Quink, CPA and Deborah J. Penzias, CPA
The talented team at Burkhart Pizzanelli provides
provides expertise in a full range of accounting
and financial services. Feel free to call on us at Consulting 413.734.9040.Feel free to call on us at 413.734.9040.
expertise in a full range of accounting and financial services.
201 Park Avenue, Suite 2, West Springfield, MA
201 Park Avenue, Suite 2 • West SpringfieldR, eMtAir0e1m08e9nt Plans T: 413.734.9040 • F: 413.781.5609
T: 413.734.9040 • F: 413.781.5609 • www.bppc.com www.bppc.com Tax Planning
ACCOUNTING • CONSULTING • LITIGATION • RETIREMENT PLANS • TAX PLANNING
Litigation
    grenierfinancial.com | Fax: 413 731 7268
Life’s a Journey.
Let us walk the road with you. It’s what we do.
 Pat Grenier, Principal
RR, CFP®, MBA
[email protected]
MA One Monarch Place, Suite 810 Springfield, MA 01144
413 736 6712
CT 265 Main Street Wethersfield, CT 06109
860 721 7880
  Securities and advisory services offered through Cadaret Grant & Co., Inc., an SEC Registered Investment Adviser and member FINRA/SIPC. Grenier Financial Advisors and Cadaret Grant are separate entities.
     36 APRIL 14, 2021
ESTATE & TAX PLANNING
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