TWC Explains How to Report Fraud for Employers

Texas Workforce Commission • April 14, 2021

The Texas Workforce Commission (TWC) released a new video for Texas employers that provides instructions on how to report fraud due to identity theft. Unemployment benefits fraud is a crime that creates waste and impacts the employer-supported fund TWC uses to pay unemployment benefits to claimants. The purpose of the video is to provide instructions that employers can use to identify and report fraudulent claims due to identity theft. Employers responding quickly to TWC notices can help TWC detect identity theft claims faster and lock the accounts before payments go out.

In 2020, the Texas Workforce Commission identified 234,268 suspicious claims, approximately 6.82 percent of the total number of claims for 2020. Perpetrators use identity information they stole from somewhere else before they file the claim with TWC. This means the information is real, but the claim is not. Unemployment benefits identity theft occurs when an imposter uses another person’s personal information, like their name and Social Security number, to file a claim for unemployment benefits. Take steps to secure your identity online by practicing Internet security best practices. Treat your TWC account and all accounts like you would your bank account. The Texas Workforce Commission must investigate every unemployment benefits claim to confirm identity and to lock accounts that are fraudulent.


If you are an employer and received a Notice of Application for Unemployment Benefits fromTWC stating that you or an employee has filed a claim, and the claim is false, please follow the instructions for reporting a false claim listed in the official TWC letter. For convenience, these are the same instructions:


  • Go to the Employer Benefits Services system (www.twc.texas.gov/businesses/employer-benefits-services).
  • Under Separation Options, select “Still Working” or “Never Worked Here,” as appropriate. 
  • Add any additional details in the Separation Details box. You can type “Fraud – still working” or “Fraud – never worked here.”

 

After you have done this vital step, please also report the identity theft by visiting TexasWorkforce.org and clicking the green button to report ID theft. TWC will only contact you if we need clarification regarding the information provided. Reporting fraudulent claims using the portal in English or Spanish on the TWC website will give users a confirmation receipt that the information has been received. Individuals who report suspected ID theft fraud to TWC by other means do not always receive a call, email, or letter in response to the information they provided.

The new video for employers on how to report identity theft fraud can be found on TWC’s YouTube page (www.youtube.com/user/TexasWorkforceComm). For more information on how to report identity theft fraud and steps you can take to avoid identity theft fraud, please visit TexasWorkforce.org. If you don’t have access to the internet or if you would like to report identity theft fraud anonymously, you can call 800-252-3642. The fraud hotline and TWC’s website are both available 24 hours a day, 7 days a week.

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By Workforce Solutions East Texas • August 26, 2025
When Malachi Whedbee joined the Summer Earn and Learn (SEAL) program, he saw it as an opportunity to gain experience, learn new skills, and contribute to his community. What he didn’t expect was how much of an impact his dedication would make—both on his future and on the people around him. Through SEAL, Malachi began working full-time at the Upshur Rural Library, clocking in at 8:00 a.m. every morning and working until 5:00 p.m. His days were filled with tasks like completing computer library entries, assisting with various projects, and lending a hand wherever needed. But for Malachi, these duties weren’t just boxes to check—they were chances to prove himself. And prove himself he did. Malachi’s exceptional work ethic showed in everything he did. He was always on time, completed assignments with precision, and eagerly stepped up for additional responsibilities. His positive attitude was contagious, creating a welcoming environment for both staff and patrons. Mrs. King, the library’s supervisor, quickly recognized that Malachi was more than just a temporary hire—he was an asset. Describing him as “outgoing, dependable, and hardworking,” she praised his professionalism and the joy he brought to the workplace. By the end of the program, Malachi’s efforts had done more than meet expectations—they had opened a door. Mrs. King was so impressed that she offered him an interview for a permanent position at the library. With the same enthusiasm and determination he brought to every day on the job, Malachi accepted the opportunity. Malachi’s journey through SEAL is more than a personal achievement—it’s a shining example of how young adults with disabilities can break barriers and build meaningful careers when given the chance. His story is a reminder that talent, dedication, and opportunity are the real building blocks of success.
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