DENVER – An unusual spike in new unemployment claims in the week after Christmas was caused by fraudsters, the Colorado Department of Labor and Employment said Thursday.
New unemployment claims from out-of-work Colorado residents increased 63.4% in the week after Christmas compared with the previous week.
The state labor department said it would conduct a more detailed investigation into what happened.
The uptick coincided with the end on Dec. 26 of the Pandemic Unemployment Assistance program, which required less verification because no employers were involved, The Colorado Sun reported.
The claims spike in Colorado did not coincide with a spike nationwide. Seasonally adjusted new claims in the U.S. declined by 3,000 to 737,000 for the week ending in Jan. 2, according to the federal Department of Labor.
Earlier this week, labor department officials said they were receiving more reports from employers of current employees who allegedly filed a claim for unemployment, The Colorado Sun reported. Other victims reported they received unsolicited U.S. Bank ReliaCards in the mail, which is how Colorado pays its unemployment benefits.
Phil Spesshardt, the Department of Labor’s benefits services manager, recommended that property owners check their mailboxes for unrequested ReliaCards and report potential fraud to the state.
