The Texas Labor Code authorizes Texas Workforce Commission (TWC) to investigate allegations of fraud, waste, and program abuse. TWC may refer investigative results to the appropriate district or county attorney. TWC may also provide this information to the U.S. Department of Labor and the U.S. Department of Justice or other federal or state agencies.
Unemployment Benefits Fraud and Identity Fraud
Learn the difference between unemployment benefits fraud and unemployment benefits identity (ID) fraud. Get information on how to report fraud in the unemployment program, and the consequences of fraud.
Avoiding Unemployment Scams
Learn how to identify and avoid scams and find information about scams targeting unemployment benefit customers.
How to Report Fraud In a TWC Program
Use one of the following methods to report suspected fraud, waste, or abuse (not related to ID fraud):
- TWC’s secure online fraud portal – Use the portal to submit documents or a brief summary document describing the alleged fraud.
- TWC.fraud@twc.texas.gov – Use email only if you are unable to use the online portal. Provide a brief summary describing the alleged fraud. Do not use email to report unemployment ID fraud. See Warning, below.
- Fraud Hotline at 800-252-3642 – Use only to submit an anonymous report. Available 24 hours a day, seven days a week. Information must be specific as possible. Do not use the hotline to report unemployment identity fraud.
- For Telecommunications Devices for the Deaf (TDD), call Relay Texas at: 711 (Voice).
You may also report suspected fraud, waste, theft, and abuse involving state resources directly to the State Auditor's Office (SAO):
- SAO Hotline website
- SAO Hotline 800-TX-AUDIT (800-892-8348)
WARNING: The accused has a right under the Public Information Act to review and get copies of the official record. If you wish to remain anonymous, do not contact TWC by email. To remain anonymous, report any allegations by calling the TWC Fraud Hotline at 800-252-3642. See Disclosure of Fraud Report for more information.
| Fraud | A deliberate act of deception, concealment, omission, or giving false information to get a benefit or gain that is not authorized. |
|---|---|
| Waste | A practice that is careless or an inefficient use of resources, items, or services. Waste includes incurring unnecessary costs because of inefficient practices, systems, or controls. |
| Theft | The unlawful appropriation of property with the intent to deprive the owner of that property. |
| Program Abuse | Misusing or destroying state resources. Or an improper practice that does not involve prosecutable fraud. Abuse may include misapplication or misuse of public resources. |
Examples of Reportable Violations
Reportable violations include, but are not limited to, the following examples:
- Obtaining unemployment benefits by misrepresentation
- Obtaining childcare 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/customers
- 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
Report suspected fraud, waste, or program abuse in any of the following programs:
- Adult Education & Literacy
- Appeals
- Apprenticeship
- Business Enterprises of Texas
- Career Schools & Colleges
- Child Care & Early Learning Services
- Choices (Temporary Assistance for Needy Families – TANF)
- Civil Rights
- Criss Cole Rehabilitation Center
- Employment Services
- Foreign Labor Certification
- Independent Living Services for Older Individuals Who Are Blind
- Labor Market & Career Information
- Noncustodial Parent Choices
- Rapid Reemployment Services and Eligibility Assessment
- Self Sufficiency Fund
- Senior Community Services Employment Program
- Skills for Small Business
- Supplemental Nutrition Assistance Program Employment & Training (SNAP E&T)
- Trade Adjustment Assistance
- Unemployment Benefits
- Unemployment Tax
- Vocational Rehabilitation Services
- Wage and Hour
- Workforce Investment Opportunity Act (WIOA) (Employment and Training Services for Adults, Dislocated Workers, and Youths)
- WorkInTexas.com
- Work Opportunity Tax Credit
Generally, the information TWC collects for a fraud report 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., gives the accused a right to receive copies of the agency records. Copies of agency records may also be obtained by subpoena.
All documents provided to TWC become part of official agency records upon receipt by TWC. This includes emails and faxes, as well as any information transcribed by TWC staff based on verbal communication with you. These records cannot be changed to destroyed (Texas Penal Code, Chapter 37, V.T.C.A.), except as permitted by TWC's Records Retention Schedule. Included as part of any email message is the identifier inserted by your internet service provider. (Government Code 441, V.T.C.A. The Texas Workforce Records Retention Schedule approved by the State Library and Archives Commission. Public Information Act, Government Code, Chapter 552, V.T.C.A.)