Kentucky 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 Kentucky 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 Kentucky Office of Unemployment Insurance as of October 2026.
Kentucky Unemployment Fraud at a Glance
| Report fraud | https://kcc.ky.gov/career/individuals/Pages/Learn-About-Identity-Fraud.aspx |
| Hotline | (502) 564-2387 (Kentucky Office of Unemployment Insurance; the state lists this number for reporting fraud and for claims filed using someone else’s identity) |
| Penalty | A claimant paid because of a false statement, misrepresentation, or concealment is charged a 15 percent penalty on the improperly paid… |
| Criminal charge | Under KRS 341.990(5)(a) (2021 text), knowingly lying or hiding facts to get or increase benefits is a Class B… |
In This Kentucky Unemployment Fraud Guide:
How to Report Kentucky Unemployment Fraud
Report it at https://kcc.ky.gov/career/individuals/Pages/Learn-About-Identity-Fraud.aspx or call (502) 564-2387 (Kentucky Office of Unemployment Insurance; the state lists this number for reporting fraud and for claims filed using someone else’s identity). Reports can be made anonymously; the agency investigates both claimant and employer fraud.
Kentucky Unemployment Fraud in Your Name: If Someone Else Filed
- Report the fraudulent claim to the Kentucky Office of Unemployment Insurance through the Kentucky Career Center fraud page or by calling (502) 564-2387
- Tell your employer that a claim was filed in your name
- Report the identity theft to the FTC at identitytheft.gov
- File a police report with your local police department and keep a copy
- Check your credit reports for free at annualcreditreport.com and change the passwords on your email and bank accounts
Getting a Corrected 1099-G
The state’s 1099-G FAQ (2022) says to email [email protected] with your name as it appears on the 1099-G, the last four digits of your SSN, a phone number, an email address, and the reason the form is wrong. It also asks for a notarized affidavit stating you never received benefits and believe someone used your identity. The IRS says the state should then issue a corrected 1099-G showing 0.
If the corrected form does not arrive in time, the IRS says to file your return reporting only the income you actually received. Confirm the current email with the state agency.
What Counts as Kentucky Unemployment Fraud by a Claimant
Kentucky treats it as fraud when a claimant knowingly makes a false statement, or knowingly hides a material fact, to get or increase benefits (KRS 341.370(2); KRS 341.990). Common examples are going back to work and still collecting without reporting the job or wages, collecting while unable to work or not eligible, giving a false reason for leaving a job, and filing false work-search reports.
Kentucky Unemployment Fraud Penalties and Disqualification
A claimant paid because of a false statement, misrepresentation, or concealment is charged a 15 percent penalty on the improperly paid benefits, collected like an overpayment and paid into the unemployment trust fund (KRS 341.415). If the fraud overpayment is not repaid within 1 calendar year of the first notice, interest of 1.5 percent per month is added, and the debt can become a lien.
Penalty weeks are set under KRS 341.370(2) and are capped at 52 in total (see disqualification).
When Kentucky Unemployment Fraud Becomes a Criminal Case
Under KRS 341.990(5)(a) (2021 text), knowingly lying or hiding facts to get or increase benefits is a Class B misdemeanor. It becomes a Class A misdemeanor if the benefits obtained or attempted are 500 or more but under 1000, or after 3 or more prior convictions, and a Class D felony at 1000 or more. Since 2025, the state must refer suspected fraud to prosecutors (2025 Ky. Acts ch.
52, SB 162).
Employer-Side Kentucky Unemployment Fraud
The Kentucky Career Center lists these as employer UI fraud: intentionally misclassifying employees as independent contractors, paying workers off the books to avoid UI taxes, and shifting workers between employer accounts to get a lower tax rate (SUTA dumping).
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Under KRS 341.990, an employer who knowingly makes false statements to avoid paying UI contributions commits a Class A misdemeanor, or a Class D felony if the amount avoided is 100 or more. A worker can report it through the Kentucky Career Center UI fraud page (apps.kcc.ky.gov/career/UiFraud.aspx, anonymous tip option) or by calling (502) 564-2387.
Honest Mistakes Are Not Kentucky Unemployment Fraud
A wrong number on a weekly claim is a mistake, not fraud, if you correct it when you notice; fraud requires a knowing false statement. Fix it through the portal or by phone before the agency finds it.
Under SB 162 (2025 Ky. Acts ch. 52), the state must refer people suspected of unemployment fraud to the Justice and Public Safety Cabinet, the county or Commonwealth’s attorney, and the U.S. Department of Justice where applicable. The referral must include the employer and claimant names and related filings.
An employer summary of SB 162 also reports that a claimant under investigation for a knowingly false statement can be disqualified while the investigation is open. Confirm with the state agency.
Related: if the state says you were overpaid on your own claim, that is a different process — see the Kentucky overpayment guide for waivers, repayment plans and the appeal deadline.
Kentucky — the bottom line
- Report Kentucky unemployment fraud the same day you suspect it — an unreported claim in your name becomes an overpayment in your name.
- Kentucky unemployment fraud by a claimant means a knowing false statement; an honest mistake corrected promptly is not fraud.
- Penalties for Kentucky 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 Kentucky?
Use the state fraud page (https://kcc.ky.gov/career/individuals/Pages/Learn-About-Identity-Fraud.aspx) or call (502) 564-2387 (Kentucky Office of Unemployment Insurance; the state lists this number for reporting fraud and for claims filed using someone else’s identity).
Someone filed for unemployment in my name in Kentucky — what do I do?
Report the fraudulent claim to the Kentucky Office of Unemployment Insurance through the Kentucky Career Center fraud page or by calling (502) 564-2387; Tell your employer that a claim was filed in your name; Report the identity theft to the FTC at identitytheft.gov; File a police report with your local police department and keep a copy;
Check your credit reports for free at annualcreditreport.com and change the passwords on your email and bank accounts
What is the penalty for unemployment fraud in Kentucky?
A claimant paid because of a false statement, misrepresentation, or concealment is charged a 15 percent penalty on the improperly paid benefits, collected like an overpayment and paid into the unemployment trust fund (KRS 341.415).
Is an honest mistake on a weekly claim fraud in Kentucky?
No. Correct it as soon as you notice; fraud requires a knowing false statement.
Official Kentucky Sources & Resources
- Kentucky Office of Unemployment Insurance: https://kcc.ky.gov/career/If-you-are-Unemployed/Pages/default.aspx
- Report unemployment fraud in Kentucky: https://kcc.ky.gov/career/individuals/Pages/Learn-About-Identity-Fraud.aspx
- Kentucky unemployment statute: KRS ch. 341
- U.S. Department of Labor — Unemployment Insurance: dol.gov
- IRS — Form 1099-G: irs.gov
This Kentucky unemployment fraud guide was last verified against official Kentucky sources in October 2026. Rules change — confirm the current figure with the state agency or a licensed attorney.
More Kentucky Unemployment Guides
- Kentucky Unemployment Overpayment: Waivers and Repayment
- Kentucky Unemployment Appeal: Deadline and Hearing
- Kentucky 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.