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Texas Unemployment Fraud Surges, TWC Warns

Texas unemployment claims doubled in early September due to fraud, with scammers potentially using stolen personal information, warns the Texas Workforce Commission.

Published September 26, 2025 at 10:00am by Marley Malenfant


Texas Workforce Commission numbers almost doubled for the week ending Sept. 6, when 31,876 claims were filed. (Photo by Kevin Carter/Getty Images)

You might have a job, but someone else could be claiming you’re unemployed.

According to the Texas Workforce Commission, there has been a spike in fraudulent unemployment claims for September. As per data from the TWC, the commission normally has around 16,000 unemployment claims filed in a week. However, filings nearly doubled for the week ending Sept. 6, when 31,876 claims were submitted, according to reporting from WFAA and KTRX.

ABC 13 in Houston reported that three employees were alerted when someone illegally applied for benefits using their personal information. The station received a letter from TWC stating that claims had been filed under their employees' names.

"Human resources walked in, she had a piece of paper and she said, 'Just so you know, you're not laid off despite what this says,'" said Charlie Butera, ABC 13's manager of news media.

Here is how to spot suspicious activity from unemployment claims.

Who gets notified when you apply for unemployment?

According to TWC, the unemployment office notifies your most recent employer (and sometimes previous employers within a certain time frame, usually the past 12–18 months). The employer must verify details such as why your job ended and your past wages.

Employers can accept or contest your claim and they have 14 days to respond. If they contest, the state will investigate further before making a decision. But if the employer fails to respond, they lose their right to challenge the unemployment claim and their unemployment insurance taxes could rise.

This is likely what scammers are hoping for when filing fraudulent claims.

What did the TWC say about the spike in unemployment benefits?

According to WFAA, TWC acknowledged the unusually high number of claims.

"The increase in initial claims for unemployment insurance in the week ending September 6th is directly related to an increased volume of fraudulent claim attempts," the agency said. "Since Labor Day, we've observed an uptick in identity (ID) fraud claim attempts aimed at exploiting the unemployment insurance system. ... We are actively working to prevent these fraudulent claims from impacting legitimate claimants."

What is TWC's 'Slam the Scam'?

TWC encourages Texans to stay alert to fraudulent activity that could interfere with valid claims. Here are their recommendations:

  • Cut communication: Hang up the call, ignore any messages, and do not click any links or attachments.
  • Guard personal info: Be skeptical of unsolicited contact. Do not trust caller ID, and avoid sharing personal details.
  • Get validation: Contact TWC or the organization being impersonated to verify legitimacy. Use the TWC Help Desk or secure portal.
  • Rapid reporting: If you or someone you know is targeted, report it immediately via TWC’s fraud portal.