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Reporting Fraud

Hotline and Investigation of Fraud in Programs

The TWC Fraud and Program Abuse Hotline is (800) 252-3642.  The Hotline is available 24 hours a day, seven days a week. The Hotline permits reporting of matters anonymously, if desired. Information that is submitted on the Hotline must be as specific as possible.

Individuals can report suspected fraud, waste, or program abuse in any of the following programs:

  • Adult Education & Literacy
  • Apprenticeship
  • Career Schools & Colleges
  • Child Care Services
  • Choices
  • Civil Rights
  • Foreign Labor Certification
  • Labor Law
  • Labor Market & Career Information
  • Noncustodial Parent Choices
  • Rapid Reemployment Services
  • Self Sufficiency
  • Senior Community Services Employment Program
  • Skills Development
  • Supplemental Nutrition Assistance Program (SNAP & ET) Employment & Training
  • The Criss Cole Rehabilitation Center
  • The Independent Living Services Program for Older Individuals Who Are Blind
  • The Temporary Assistance for Needy Families (TANF) Program
  • Trade Adjustment Assistance
  • Unemployment Insurance Benefits
  • Unemployment Insurance Tax
  • Vocational Rehabilitation Services
  • Wagner-Peyser Employment Services
  • Workforce Investment Opportunity Act (WIOA) Adult, Dislocated Workers and Youth Employment Training and Services
  • WorkInTexas.com
  • Work Opportunity Tax Credit

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Definitions and Examples of Reportable Violations

The Texas Workforce Commission is authorized by the Texas Labor Code to investigate allegations of fraud, waste and program abuse involving TWC programs.

Fraud is a willful act or course of deception, or an intentional concealment, omission, or perversion of truth, with the intent to obtain a material benefit or service for that person or another person, for which the person may not be eligible. 

Waste is any practice that a reasonably prudent person would deem careless or that would allow inefficient use of resources, items or services. Waste includes incurring unnecessary costs because of inefficient or ineffective practices, systems, or controls.

Abuse is the intentional, wrongful or improper use or destruction of state resources, or a seriously improper practice that does not involve prosecutable fraud.  Abuse may include misapplication or misuse of public resources.

Theft is the unlawful appropriation of property with the intent to deprive the owner of that property.

Reportable violations include, but are not limited to, the following examples:

  • Obtaining unemployment insurance benefits by misrepresentation
  • Obtaining child care benefits by misrepresentation
  • Improper tax avoidance by nondisclosure or misrepresentation of facts
  • Authorizing an improper claim for others
  • Authorizing ineligible participation in TWC programs
  • Authorizing payments to ineligible claimants/clients
  • Accessing agency information (e.g., wage records) for non-business reasons.
  • Conflict of interest issues
  • Extorting money or accepting favors from contractors, clients, or vendors
  • Failing to follow applicable rules, regulations, policies, procedures, and laws
  • Improperly disclosing information
  • Misusing State-owned property (computers, equipment, telephones, etc.)
  • Nondisclosure of material facts
  • Overstating travel expense reimbursement claims
  • Receiving kickbacks from contractors, clients, or vendors
  • Using State supplies for personal use
  • Using State telephone lines for personal calls to avoid long distance charges
  • Using unauthorized computer programs on State-owned computers
  • Installation of State-owned computer software on home computers
  • Violating contract or grant procedures
  • Falsifying financial records to conceal theft of money or property
  • Intentionally misrepresenting the costs of goods or services provided

The Commission may refer investigative results to the appropriate district or county attorney. The Commission may also provide this information to the United States Department of Labor and the United States Department of Justice or other federal or state agencies.

Any documents you provide to the Commission, including emails and faxes, as well as any information transcribed by Commission staff based on verbal communication with you, become part of official agency records upon receipt by the Commission (Government Code 441, V.T.C.A. and the Texas Workforce Records Retention Schedule approved by the State Library and Archives Commission on January 4, 2002, as amended, as well as the Public Information Act, Government Code, Chapter 552, V.T.C.A.) These records cannot be altered or destroyed (Texas Penal Code, Chapter 37, V.T.C.A.), except as permitted by the Commission's Records Retention Schedule.

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Public Disclosure of Fraud Report

Generally, information received by the Commission through fraud reports or investigations is not subject to disclosure to the public, unless required by law. However, the Public Information Act, Government Code, Chapter 552, V.T.C.A., provides the person accused with a right to review the agency records, as well as the ability to obtain copies of these records. Copies of agency records may also be obtained by subpoena.

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Identity Theft Fraud

Victims of identity theft are advised to take the following actions:

  1. Contact the Police department in the city in which you reside and get an incident report and number. 
  2. Consult the Federal Trade Commission website (checklist of further actions is available on this site)
  3. Contact one of the three credit reporting agencies listed below, and:
    1. Ask that a free fraud alert be placed on your credit report.
    2. Ask for a free credit report (you only need to contact one of the three agencies because the law requires the agency to call to contact the other two.)
    3. If needed, ask to have your credit account frozen.
      • Equifax - 800-349-9960
      • Experian - 888-397-3742
      • TransUnion - 888-909-8872
  4. If bank or credit union account was compromised, contact the fraud department of each institution. Report the identity theft and, if needed, ask them to close or freeze the compromised account. 

If you have filed an unemployment benefits claim and have been asked to provide identity verification documents, please visit the UI Fraud Submission portal (English), or UI Fraud Submission portal (Spanish) to provide your documentation. 

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How and Where to Report Fraud

If you do not want your name, address and telephone disclosed, then you need to make an anonymous report on the Fraud Hotline at (800) 252-3642.

If you would prefer to submit your information via email you may do so to TWC.fraud@TWC.state.tx.us

WARNING: Once you send your email message and the Texas Workforce Commission receives it, the message becomes an official state record. Included as part of the message is the identifier that is inserted by your internet service provider, which cannot be removed from the record pursuant to Texas Penal Code Chapter 37. The accused has a special right of access under the Public Information Act to review the official record and/or obtain copies of the record. Therefore, if you wish to remain anonymous, DO NOT contact TWC via email. Instead, you may report any allegations by calling the TWC Fraud Hotline at 800-252-3642. For Telecommunications Devices for the Deaf (TDD), call Relay Texas at: 711 (Voice).

You may also report suspected fraud, waste and abuse involving state resources directly to the State Auditor's Office (SAO). You may contact the SAO through the SAO Hotline website or by calling the SAO Hotline at 800-TX-AUDIT (800) 892-8348.

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