SOM - State warns of websites that charge fees for filing jobless claims or ask the unemployed to directly deposit their benefits with them


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State warns of websites that charge fees for filing jobless claims or ask the unemployed to directly deposit their benefits with them

Contact: Norm Isotalo 313-456-2939
Agency: Energy, Labor & Economic Growth

JUNE 15, 2009 - Michigan's Unemployment Insurance Agency (UIA) is warning unemployed workers against using websites that charge fees to file their claims for unemployment benefits and to be wary of emails from websites that will set up direct deposit accounts for their benefits.

UIA Director Stephen Geskey said his agency does not charge any fees to those filing claims for unemployment benefits, and it already offers direct deposit and debit cards as payment options for benefit payments.

"There is only one official website that unemployed Michigan workers should use when applying for unemployment benefits and that site belongs to the state's Unemployment Insurance Agency at www.michigan.gov/uia," Geskey said. "Any website suggesting otherwise is a deplorable consumer scam, preying on some of our most vulnerable citizens."

The agency has also become aware of at least one website that is offering a pre-paid Visa card for those who have their unemployment benefit payments directly deposited onto the card.

"These file-for-a-fee and direct deposit websites ask for personal information from users, including their Social Security numbers," Geskey said, "which opens users to possibility of identity theft. Meanwhile our UIA site is operated by the state of Michigan, and is fee free. In addition, we work closely with the nationally known Chase Bank, which administers our direct deposit and debit card payment options."

The filing sites have been advertising on search engines such as Google and Yahoo. When an individual searches these search engines for information on how to file for unemployment benefits, the fee sites appear and charge up to $20 to file an individual's unemployment claim.

While unofficial or fraudulent websites are often created to look official, and may even have a ".us" domain in their web address, using them can delay a person's benefits or allow identity theft. Unemployed workers should never enter their personal information for unemployment benefits onto a non-state-sponsored website.


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