Colorado 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 Colorado 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 Colorado Department of Labor and Employment (CDLE) as of October 2026.
Colorado Unemployment Fraud at a Glance
| Report fraud | https://cdle.colorado.gov/unemployment/report-fraud |
| Hotline | Colorado’s CDLE pages don’t list a separate fraud-only hotline. For a claim filed in someone’s name, the state sends people to the UI Customer Service Center: 303-318-9000 (Denver metro) or 1-800-388-5515 (toll-free). Spanish lines are 303-318-9333 and 1-866-422-0402. The Colorado Bureau of Investigation’s Identity Theft & Fraud Hotline, (855) 443-3489, is answered 24 hours a day. |
| Penalty | Under C.R.S. 8-81-101, a fraud overpayment has to be repaid in full, plus a 65% penalty on the overpaid amount and interest. |
| Disqualification | Colorado can assess 4 penalty weeks for each week claimed fraudulently (C.R.S. 8-81-101). |
| Criminal charge | Colorado generally charges unemployment fraud as theft under C.R.S. |
In This Colorado Unemployment Fraud Guide:
How to Report Colorado Unemployment Fraud
Report it at https://cdle.colorado.gov/unemployment/report-fraud or call Colorado’s CDLE pages don’t list a separate fraud-only hotline. For a claim filed in someone’s name, the state sends people to the UI Customer Service Center: 303-318-9000 (Denver metro) or 1-800-388-5515 (toll-free). Spanish lines are 303-318-9333 and 1-866-422-0402. The Colorado Bureau of Investigation’s Identity Theft & Fraud Hotline, (855) 443-3489, is answered 24 hours a day..
Reports can be made anonymously; the agency investigates both claimant and employer fraud.
Colorado Unemployment Fraud in Your Name: If Someone Else Filed
- Fill out CDLE’s Report Unemployment Identity Theft form on the Report Fraud page (ColoradoUI.gov, then “Report ID Theft,” then “I’m an Individual Reporting Identity Theft”)
- If a U.S. Bank ReliaCard arrived that you never asked for, call U.S. Bank at 1-855-282-6161 and ask them to deactivate it
- Ask Equifax (1-800-525-6285), Experian (1-888-397-3742) and TransUnion (1-800-680-7289) to put a fraud alert on your name and Social Security number
- Report the theft to your local police and to the Colorado Bureau of Investigation at (855) 443-3489
- Keep a file of every notice, email and note about the theft
Getting a Corrected 1099-G
CDLE’s Tax Form 1099-G page tells anyone who got a 1099-G for a claim they never filed to report it as identity theft and send the Report Invalid 1099-G Form. CDLE then mails a corrected 1099-G with $0 in the unemployment compensation box. The Colorado Department of Revenue says to report only income you actually received.
A 2021 CDLE update said you don’t have to wait for the corrected form to file, so check that this still applies with the agency.
What Counts as Colorado Unemployment Fraud by a Claimant
Colorado treats it as fraud when someone knowingly gives false information or hides a material fact to get benefits (C.R.S. 8-81-101). Common examples are leaving work or earnings off a weekly payment request, working while claiming without reporting it, reporting job contacts that never happened, and giving a false reason for leaving a job, such as saying you were laid off when you quit.
CDLE checks the wages people report against what employers report and against new-hire records.
Colorado Unemployment Fraud Penalties and Disqualification
Under C.R.S. 8-81-101, a fraud overpayment has to be repaid in full, plus a 65% penalty on the overpaid amount and interest. The state can also deny benefits for 4 weeks for each week in which a claim was filed or benefits were received fraudulently. The statute says the 65% penalty cannot be reduced because it seems unfair. Colorado can assess 4 penalty weeks for each week claimed fraudulently (C.R.S.
8-81-101). Penalty weeks are served only on an active claim you are filing on. No benefits are paid during those weeks, and nothing is taken off the overpayment balance. CDLE also lists being disqualified from future benefits as a possible result.
When Colorado Unemployment Fraud Becomes a Criminal Case
Colorado generally charges unemployment fraud as theft under C.R.S. 18-4-401, and the class depends on how much money was involved. $300 to under 1000 is a class 2 misdemeanor, 1000 to under 2000 is a class 1 misdemeanor, 2000 to under 5000 is a class 6 felony, and 5000 to under 20000 is a class 5 felony. Paying the money back does not by itself stop a criminal case.
CDLE says a conviction can come in state or federal court.
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Employer-Side Colorado Unemployment Fraud
Employer-side fraud includes calling employees independent contractors (misclassification) and SUTA dumping, which means buying or moving a business to get a lower unemployment premium rate. CDLE says SUTA dumping is illegal under the Colorado Employment Security Act. It can bring the highest premium rate for that year and the next 3 years, plus prosecution and fines. Workers can report misclassification through CDLE’s Tip and Lead Form.
Honest Mistakes Are Not Colorado Unemployment Fraud
An overpayment caused by an honest mistake must still be repaid, but you can ask to have it waived for financial hardship using CDLE form B-491. Fraud overpayments that don’t qualify are not considered for a waiver. You can appeal an overpayment decision within 20 days of the mailing date; that figure comes from 2021 reporting, so confirm the current deadline.
CDLE’s steps for correcting a weekly payment request online could not be confirmed. Benefit Payment Control can be reached at 303-318-9035 or 1-877-464-4622.
Colorado’s fraud penalty is a fixed 65% of the overpayment, and the statute says it cannot be reduced for fairness reasons (C.R.S. 8-81-101). Penalty weeks have to be served while filing on an active claim, and they don’t reduce what is owed. CDLE says it will never contact you to ask for your Social Security number, bank account numbers, PIN or passwords.
Related: if the state says you were overpaid on your own claim, that is a different process — see the Colorado overpayment guide for waivers, repayment plans and the appeal deadline.
Colorado — the bottom line
- Report Colorado unemployment fraud the same day you suspect it — an unreported claim in your name becomes an overpayment in your name.
- Colorado unemployment fraud by a claimant means a knowing false statement; an honest mistake corrected promptly is not fraud.
- Penalties for Colorado 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 Colorado?
Use the state fraud page (https://cdle.colorado.gov/unemployment/report-fraud) or call Colorado’s CDLE pages don’t list a separate fraud-only hotline. For a claim filed in someone’s name, the state sends people to the UI Customer Service Center: 303-318-9000 (Denver metro) or 1-800-388-5515 (toll-free). Spanish lines are 303-318-9333 and 1-866-422-0402. The Colorado Bureau of Investigation’s Identity Theft & Fraud Hotline, (855) 443-3489, is answered 24 hours a day..
Someone filed for unemployment in my name in Colorado — what do I do?
Fill out CDLE’s Report Unemployment Identity Theft form on the Report Fraud page (ColoradoUI.gov, then “Report ID Theft,” then “I’m an Individual Reporting Identity Theft”); If a U.S. Bank ReliaCard arrived that you never asked for, call U.S.
Bank at 1-855-282-6161 and ask them to deactivate it; Ask Equifax (1-800-525-6285), Experian (1-888-397-3742) and TransUnion (1-800-680-7289) to put a fraud alert on your name and Social Security number; Report the theft to your local police and to the Colorado Bureau of Investigation at (855) 443-3489; Keep a file of every notice, email and note about the theft
What is the penalty for unemployment fraud in Colorado?
Under C.R.S. 8-81-101, a fraud overpayment has to be repaid in full, plus a 65% penalty on the overpaid amount and interest.
Is an honest mistake on a weekly claim fraud in Colorado?
An overpayment caused by an honest mistake must still be repaid, but you can ask to have it waived for financial hardship using CDLE form B-491. Fraud overpayments that don’t qualify are not considered for a waiver.
Official Colorado Sources & Resources
- Colorado Department of Labor and Employment (CDLE): https://cdle.colorado.gov/unemployment
- Report unemployment fraud in Colorado: https://cdle.colorado.gov/unemployment/report-fraud
- Colorado unemployment statute: C.R.S. 8-70 to 8-82
- U.S. Department of Labor — Unemployment Insurance: dol.gov
- IRS — Form 1099-G: irs.gov
This Colorado unemployment fraud guide was last verified against official Colorado sources in October 2026. Rules change — confirm the current figure with the state agency or a licensed attorney.
More Colorado Unemployment Guides
- Colorado Unemployment Overpayment: Waivers and Repayment
- Colorado Unemployment Appeal: Deadline and Hearing
- Colorado 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.