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State agencies have a duty to prevent, detect, and eliminate the misuse of taxpayer funds. The Texas Labor Code authorizes Texas Workforce Commission (TWC) to investigate allegations of fraud, waste, and program abuse. Waste, fraud, and abuse of taxpayer dollars will not be tolerated and will be punished to the fullest extent of the law.

Report Child Care Fraud: Online or Phone

Report suspected fraud by a Child Care Provider or Parent/Caretaker who is fraudulently receiving funds.

OR

  • Call the Fraud Hotline at 800-252-3642, to make an anonymous report. Information must be as specific as possible. Be aware that your caller ID and any information provided over the phone will be documented. See warning, below.  
    • For complete anonymity, report to the State Auditor's Office.
    • Telecommunications Devices for the Deaf (TDD), call Relay Texas at 711 (Voice).

Report Unemployment Identity (ID) Fraud: Online Only

Report Unemployment ID fraud if someone applied for benefits in Texas using your Social Security number (SSN), or if someone made unauthorized changes to a claim that you filed.  

You must report ID fraud using TWC’s online fraud portal. (You cannot report by phone, email, or anonymously.) 

Report Unemployment Benefits Eligibility Fraud 

Report suspected fraud about a person who is fraudulently receiving unemployment benefits, such as someone working full-time or in jail while collecting benefits. 

OR

  • Call the Fraud Hotline at 800-252-3642 to make an anonymous report. Provide as much specific information as possible. Your caller ID and any information provided over the phone will be documented. See warning, below.  
    • For complete anonymity, report to the State Auditor's Office.
    • Telecommunications Devices for the Deaf (TDD), call Relay Texas at 711 (Voice).

For information about the difference between Unemployment Eligibility fraud and ID fraud, go to Unemployment Benefits Fraud and Identity Fraud.

Report Fraud in Any Other TWC Program

Report suspected fraud, waste, or abuse in any TWC Program. This is only for fraud, waste, or abuse at the Texas Workforce Commission. 

OR

  • Call the Fraud Hotline at 800-252-3642, to make an anonymous report. Provide as much specific information as possible. Your caller ID and any information provided over the phone will be documented. See warning, below.  
    • For complete anonymity, report to the State Auditor's Office.
    • Telecommunications Devices for the Deaf (TDD), call Relay Texas at 711 (Voice).

Report TWC Program Fraud to the State Auditor's Office (SAO)

You may report suspected fraud, waste, theft, and abuse involving state resources directly to the SAO:

Warning about Anonymous Reports

The accused has a right under the Public Information Act to review and get copies of the official record. To remain completely anonymous, report using the State Auditor's Office. Fraud allegations submitted using the TWC Fraud Hotline will document the caller ID and any information provided over the phone. See Disclosure of Fraud Report section, below, for more information. 

Magnifying glass over the word Fraud

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. 

Man holding up hands in frustration in front of a laptop computer.

Avoiding Unemployment Scams

Learn how to identify and avoid scams and find information about scams targeting unemployment benefit customers. 

Understanding Fraud, Waste, and Abuse in TWC Programs

Read about the definitions of fraud, waste, theft, and abuse within Texas Workforce Commission (TWC) programs. Find further explanation on reportable violations, affected TWC programs, and clarification on the disclosure policies surrounding fraud reports.

FraudA deliberate act of deception, concealment, omission, or giving false information to get a benefit or gain that is not authorized.
WasteA 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.
TheftThe unlawful appropriation of property with the intent to deprive the owner of that property.
Program AbuseMisusing or destroying state resources. Or an improper practice that does not involve proseutable 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 childcare benefits by misrepresentation, providing false information, or withholding information
  • Obtaining unemployment benefits by misrepresentation, providing false information, or withholding information
  • 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

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.

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. When submitting information by phone, the caller ID is recorded and when submitted by email, the IP address is recorded. If the individual reporting fraud provides identifying information when submitting the report, that information is also documented. 

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.)