Indiana unemployment fraud has two very different readers: the person who just got a letter or a 1099-G for a claim they never filed, and the claimant who wants to know what the state counts as fraud and what it costs.
This guide covers both — how to report Indiana unemployment fraud, the identity-theft steps, how to get a corrected 1099-G, what counts as claimant fraud, the penalties and disqualification, and when it becomes a criminal case. Verified against Indiana Department of Workforce Development as of October 2026.
Indiana Unemployment Fraud at a Glance
| Report fraud | https://www.in.gov/dwd/indiana-unemployment/fraud/ |
| Penalty | The claimant repays all benefits paid for the fraud weeks, plus interest of 0.5% a month on the unpaid balance. |
| Criminal charge | DWD points to Indiana’s welfare fraud statute, IC 35-43-5-7, which grades the charge by the amount obtained. |
In This Indiana Unemployment Fraud Guide:
How to Report Indiana Unemployment Fraud
Report it at https://www.in.gov/dwd/indiana-unemployment/fraud/. Reports can be made anonymously; the agency investigates both claimant and employer fraud.
Indiana Unemployment Fraud in Your Name: If Someone Else Filed
- Fill out State Form 57068 and mail or fax it to DWD so the state can lock the claim and open an investigation
- Send an electronic report to the Indiana State Police at [email protected]
- File an identity theft complaint with the Indiana Attorney General online or at 800-382-5516
- Ask the three major credit bureaus to place a fraud alert on your credit file
- If you have a job now, tell your employer’s HR department so it can protest the claim with DWD
- Report the theft at IdentityTheft.gov
Getting a Corrected 1099-G
Report the claim through the DWD fraud page and return State Form 57068. DWD sends a corrected 1099-G only after its investigation confirms identity theft, which may take several months. The IRS generally advises filing an accurate return that reports only income you actually received. For your Indiana state return, the Department of Revenue asks victims to email IRS Form 14039 and a copy of the false 1099-G to [email protected].
What Counts as Indiana Unemployment Fraud by a Claimant
Indiana treats it as fraud when a claimant knowingly leaves earnings off a weekly voucher in the waiting week, a benefit week or an extended benefit week. That includes working while claiming without reporting the pay. It is also fraud to knowingly hide or falsify any fact that affects eligibility or the benefit amount, such as false work-search entries or a false reason for losing the job.
Filing under someone else’s identity is fraud too (IC 22-4-13-1.1).
Indiana Unemployment Fraud Penalties and Disqualification
The claimant repays all benefits paid for the fraud weeks, plus interest of 0.5% a month on the unpaid balance. A civil penalty is added on top of that. It is 25% of the overpayment for the first instance, 50% for the second and 100% for each later instance (IC 22-4-13-1.1(b)). Indiana does not use separate penalty weeks.
Instead, the claimant forfeits the benefits for each week the fraud occurred and loses the related wage credits (IC 22-4-13-1.1(a)).
When Indiana Unemployment Fraud Becomes a Criminal Case
DWD points to Indiana’s welfare fraud statute, IC 35-43-5-7, which grades the charge by the amount obtained. It is a Class A misdemeanor up to 750, a Level 6 felony from more than 750 up to 50000, and a Level 5 felony at 50000 or more. Knowingly making a false statement to get an employment benefit can also be charged under the general fraud statute, IC 35-43-5-4.
Prosecutors decide whether to file charges, so confirm details with an attorney.
Employer-Side Indiana Unemployment Fraud
DWD treats SUTA dumping as employer fraud. It means manipulating the unemployment tax rate or payroll reports to pay less tax, for example by moving workers to a new business with common ownership. DWD has a SUTA Dumping Investigation Unit, and anyone who advises an employer to do this can face a civil penalty of up to 5000 per incident.
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Workers can report employer fraud, including suspected misclassification, through https://www.in.gov/dwd/indiana-unemployment/fraud/ or the dol.gov state tip-line directory.
Honest Mistakes Are Not Indiana Unemployment Fraud
The fraud penalty applies only when a claimant acted “knowingly.” An honest error is generally treated as a non-fraud overpayment, which you still have to repay, but you may qualify to have it waived by filing an Overpayment Waiver Request. Every voucher requires you to report all work and gross earnings for the week the work was done, even if you have not been paid yet.
If you find a mistake, contact DWD at 1-800-891-6499 promptly to correct the weekly claim.
Indiana’s fraud penalty grows with each violation (25%, then 50%, then 100%). The forfeiture applies whether or not benefits were actually paid for the week. Also, sending State Form 57068 makes DWD lock the claim account against any further use while it investigates.
Related: if the state says you were overpaid on your own claim, that is a different process — see the Indiana overpayment guide for waivers, repayment plans and the appeal deadline.
Indiana — the bottom line
- Report Indiana unemployment fraud the same day you suspect it — an unreported claim in your name becomes an overpayment in your name.
- Indiana unemployment fraud by a claimant means a knowing false statement; an honest mistake corrected promptly is not fraud.
- Penalties for Indiana unemployment fraud stack: repayment, a monetary penalty, penalty weeks, and in large cases a criminal referral.
Frequently Asked Questions
How do I report unemployment fraud in Indiana?
Use the state fraud page (https://www.in.gov/dwd/indiana-unemployment/fraud/).
Someone filed for unemployment in my name in Indiana — what do I do?
Fill out State Form 57068 and mail or fax it to DWD so the state can lock the claim and open an investigation; Send an electronic report to the Indiana State Police at [email protected]; File an identity theft complaint with the Indiana Attorney General online or at 800-382-5516; Ask the three major credit bureaus to place a fraud alert on your credit file; If you have a job now,
tell your employer’s HR department so it can protest the claim with DWD; Report the theft at IdentityTheft.gov
What is the penalty for unemployment fraud in Indiana?
The claimant repays all benefits paid for the fraud weeks, plus interest of 0.5% a month on the unpaid balance. A civil penalty is added on top of that.
Is an honest mistake on a weekly claim fraud in Indiana?
The fraud penalty applies only when a claimant acted “knowingly.” An honest error is generally treated as a non-fraud overpayment, which you still have to repay, but you may qualify to have it waived by filing an Overpayment Waiver Request.
Official Indiana Sources & Resources
- Indiana Department of Workforce Development: https://www.in.gov/dwd/indiana-unemployment/
- Report unemployment fraud in Indiana: https://www.in.gov/dwd/indiana-unemployment/fraud/
- Indiana unemployment statute: Ind. Code 22-4
- U.S. Department of Labor — Unemployment Insurance: dol.gov
- IRS — Form 1099-G: irs.gov
This Indiana unemployment fraud guide was last verified against official Indiana sources in October 2026. Rules change — confirm the current figure with the state agency or a licensed attorney.
More Indiana Unemployment Guides
- Indiana Unemployment Overpayment: Waivers and Repayment
- Indiana Unemployment Appeal: Deadline and Hearing
- Indiana Unemployment Benefits: How Much and How Long
- Unemployment Guides for All 50 States
Disclaimer: This guide is general information, not legal or financial advice. My Unemployment Rights is an independent educational resource, not a government agency and not a law firm. Unemployment benefit amounts, deadlines and rules change — every figure here carries the date we verified it. Confirm the current figure and any deadline with your state unemployment agency before you act.