Proactive Fraud Detection with SIDES. Stopping Identity-Based UI Claims Before They Cost You

Why Fraud Detection Still Matters

Unemployment insurance (UI) fraud continues to cost states billions each year. According to the U.S. Department of Labor, nearly 18.7% of federal pandemic UI payments (more than $121 billion)  were issued improperly, with the majority due to identity fraud or insufficient claimant verification. While the peak of pandemic-era fraud has passed, state agencies are still battling high claim volumes, identity theft schemes, and verification lags. For large employers, a single fraudulent claim can trigger unnecessary overpayments, audits, and reputational damage. This makes proactive UI fraud detection a compliance essential, not just a technology nice-to-have.

The Hidden Costs of UI Identity Fraud

Fraudulent unemployment claims are not just a state agency problem. They create real financial and administrative risk for employers. Identity theft claims often bypass internal HR checks, appearing legitimate until a charge statement or overpayment is issued. Employers face the burden of disputing fraudulent charges, reallocating staff to manage hearings, and absorbing preventable tax rate increases. The lack of real-time visibility into claim data compounds the issue. For HR teams already stretched thin, each fraudulent claim introduces avoidable cost, complexity, and compliance exposure.

What Leading Employers Are Doing to Stay Ahead

• Monitoring for SIDES activity in near-real time enables proactive fraud detection before charges post. This allows employers to intervene faster and alert state agencies when identity theft is suspected.
• Flagging suspicious claim patterns based on role, rehire data, and separation history minimizes false positives. Intelligent rule sets can differentiate between valid terminations and outlier claims.
• Centralizing UI activity across locations prevents fragmented or delayed responses to fraud alerts. A coordinated, full-picture view helps enterprise teams close gaps faster.
• Training HR teams to review SIDES requests carefully improves initial claim accuracy. Even small data discrepancies like rehire dates or job codes can signal fraud.
• Aligning with a third-party partner that offers state-specific expertise helps escalate high-risk cases efficiently. Not all fraud is obvious. Access to hearing specialists or audit teams increases employer leverage.

How UCM by HRlogics Uses SIDES to Fight Fraud

Identity fraud in unemployment claims can lead to overpayments, audits, and reputational risk. UCM by HRlogics connects directly to SIDES to flag suspicious activity early and protect employers before issues escalate.

• Daily SIDES monitoring to detect mismatches, duplicates, or claims filed for active employees
• Real-time fraud alerts escalated to a dedicated resolution team for fast intervention
• Direct agency collaboration to dispute improper charges and stop fraudulent payments
• Centralized oversight tools that give employers visibility across all locations and claims
• Support for complex cases through integrated hearing prep and post-claim audits

Reduced Risk, Faster Action, Stronger Compliance

Employers using UCM by HRlogics report fewer overpayment incidents, more successful fraud disputes, and tighter control over their UI programs. With SIDES monitoring and integrated claim tracking, HR and compliance teams can stay ahead of evolving fraud schemes without adding internal burden.Protect your team, budget, and compliance posture with proactive UI fraud prevention through UCM by HRlogics.

See how UCM by HRlogics stops fraud before it spreads. 

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