New Jobless Claims In MD Fall Sharply; Fraudulent Filings Found

MARYLAND — First-time claims for Maryland unemployment benefits fell sharply last week as the COVID-19 pandemic continued to pummel the state's labor market.

A total of 22,428 workers sought jobless aid in the week ending Feb. 6, Maryland's labor department said, breaking a five-week streak of rising claims.

The latest figure — which represents a 55.5 percent decrease from the prior week — pushes the total number of filings to 1.64 million.

While the number of new claims has dropped substantially from its peak in May, it is still high by historical standards.

Prior to the pandemic, weekly filings hovered between 2,000 and 6,500. During the public health crisis, however, these numbers have fluctuated between 2,090 and 109,263. The all-time pandemic high was for the week ending May 2.

Of the 22,428 workers who applied last week, 4,410 filed for Pandemic Unemployment Assistance (PUA) — a federal program for gig workers, contractors, and other self-employed people who otherwise are ineligible for regular jobless benefits.

The jurisdiction with the most PUA claims last week was Prince George's County, with 759, according to state data.

Claims filed for Pandemic Emergency Unemployment Compensation (PEUC) — a federal program that provides an additional 13 weeks of pay to workers who've exhausted their other benefits — was 2,080.

The most PEUC claims were filed in Baltimore County, with 345.

State Investigates Fraudulent Claims

Maryland has seen an uptick in filings every week this year — except for last week. The rise in claims may be tied to fraud that was recently detected by state officials.

In a statement released Thursday, Gov. Larry Hogan said the state has reported more than 156,000 potentially fraudulent claims since the beginning of January.

Of the 243,186 new claims filed this year, 156,403 — or 64.31 percent — have been identified as potentially fraudulent "due to new and existing aggressive security measures in place to protect taxpayers and the integrity of the state's program," officials said.

Since the passage of the Continued Assistance for Unemployed Workers Act, which expanded both the PUA and PEUC programs and offered an additional $300 per week to eligible claimants, the Hogan administration said states have seen a significant spike in fraudulent activity.

"With the record number of unemployment insurance claims filed and the additional federal benefits available during the COVID-19 pandemic, states across the nation have continued to see bad actors and fraudsters using illegally obtained data to file fraudulent unemployment insurance claims," officials said.

More than 87 percent of suspicious claims, according to Maryland's labor department, have been confirmed as fraudulent.

Of the 161,897 out-of-state claims that have been flagged, 147,305 — or 90.99 percent — either didn't upload the requested documentation or had their documentation denied.

Of the 226,933 in-state claims identified as potentially fraudulent, 191,358 — 84.32 percent — either didn't upload the requested documentation or had their documentation denied.

The state says there are currently 14,348 claims being manually reviewed by a team of specialists.

"The department recently e-mailed all employers about potentially fraudulent charges appearing on their fourth-quarter benefit charge statement because of an increase in the number of claims fraudulently filed in the names of people who are actively working," officials said. "This means that claims may be fraudulently filed for an employer's employee, even though the employee is still working and is not unemployed."

The state said employers would not be charged for any fraudulent benefits associated with their account.

An employer who believes a fraudulent claim has been charged to their account should immediately file a benefit charge protest through their BEACON employer portal. For additional assistance, employers can call the Employer Call Center at 410-949-0033.

If you believe that your information has been used to fraudulently file a claim, contact the Division of Unemployment Insurance's Benefit Payment Control Unit by completing a "Request for Investigation of Unemployment Insurance Fraud" form and e-mailing it to ui.fraud@maryland.gov.

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