South Dakota 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 South Dakota 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 South Dakota Department of Labor and Regulation as of October 2026.
South Dakota Unemployment Fraud at a Glance
| Report fraud | https://dlr.sd.gov/ra/individuals/report_id_theft.aspx |
| Hotline | 605-626-7649 (Reemployment Assistance Division, Benefit Payment Control Unit, Aberdeen; fraud reports also go by email to [email protected]) |
| Penalty | The monetary penalty is 50 percent of the benefits obtained by fraud for a first offense and 100 percent for each later offense (SDCL… |
| Disqualification | SDCL 61-6-22 denies benefits for at least 1 week and up to 52 weeks, counted from the date the fraud is discovered. |
| Criminal charge | Fraud cases may be referred for prosecution under SDCL 61-6-38 and 61-6-40. |
In This South Dakota Unemployment Fraud Guide:
How to Report South Dakota Unemployment Fraud
Report it at https://dlr.sd.gov/ra/individuals/report_id_theft.aspx or call 605-626-7649 (Reemployment Assistance Division, Benefit Payment Control Unit, Aberdeen; fraud reports also go by email to [email protected]). Reports can be made anonymously; the agency investigates both claimant and employer fraud.
South Dakota Unemployment Fraud in Your Name: If Someone Else Filed
- Email [email protected] right away to report a claim you did not file
- File a police report and keep a copy for creditors and credit bureaus
- Change the passwords on your email and financial accounts
- Ask your banks and card companies to place a fraud alert
- Review your Social Security earnings statement
- Report the theft to the National Center for Disaster Fraud, and use the IRS Taxpayer Guide to Identity Theft if your taxes are affected
Getting a Corrected 1099-G
Report the 1099-G to [email protected]. The Department of Labor and Regulation investigates and sends an amended 1099-G if appropriate. The department says not to wait for the corrected form before filing taxes, and to report only income you actually received. Questions go to 605-626-2452.
What Counts as South Dakota Unemployment Fraud by a Claimant
South Dakota defines fraud as knowingly giving false information, or holding back information, to get or increase benefits (SDCL 61-6-38). The claimant handbook gives these examples: not reporting all earnings while filing, working while claiming without reporting the wages, not looking for work when required, and not reporting a job separation or giving a false reason for it.
South Dakota Unemployment Fraud Penalties and Disqualification
The monetary penalty is 50 percent of the benefits obtained by fraud for a first offense and 100 percent for each later offense (SDCL 61-6-39). It comes on top of repaying the full overpayment. Interest starts right away on at-fault overpayments. Collection can include liens, distress warrants, judgments and wage garnishment.
SDCL 61-6-22 denies benefits for at least 1 week and up to 52 weeks, counted from the date the fraud is discovered. Under ARSD 47:06:04:28 the department imposes 4 weeks of administrative penalty for each week of willful misrepresentation, capped at 52 weeks. Future benefits are also barred until all fraudulent claims and fines are repaid.
When South Dakota Unemployment Fraud Becomes a Criminal Case
Fraud cases may be referred for prosecution under SDCL 61-6-38 and 61-6-40. The department lists penalties of up to 1 year in county jail and/or a 1000 fine for a misdemeanor, or up to 2 years in the state penitentiary and/or a 2000 fine for a felony. SDCL 61-6-40 adds up all benefits obtained to decide the degree of the offense.
The exact dollar line between the two was not confirmed; check with the state agency.
Employer-Side South Dakota Unemployment Fraud
Employers owe unemployment contributions on employee wages, so labeling employees as independent contractors to avoid the tax is misclassification. South Dakota uses a two-part employee test (SDCL 61-1-11). SUTA dumping means shifting a workforce to another entity to get a lower tax rate. It is barred by SDCL 61-5-46, and a knowing violation is a misdemeanor with additional penalties (SDCL 61-5-47). Workers can report to [email protected].
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Honest Mistakes Are Not South Dakota Unemployment Fraud
Fraud requires knowing or willful misrepresentation, and the South Dakota Supreme Court reversed a fraud penalty over a paperwork error (Palmer v. DLR, 2024 S.D. 31). Honest overpayments still generally must be repaid. A waiver may be requested within 15 days of the overpayment notice if you were not at fault (ARSD 47:06:04:27). On a non-fault overpayment, interest starts after 6 months.
To correct a weekly claim, contact the department at 605-626-2452 as soon as you notice the error.
South Dakota calls unemployment “Reemployment Assistance.” Fraud penalty weeks are set at 4 weeks for each fraudulent week (ARSD 47:06:04:28), capped at 52 weeks. Anyone found to have committed fraud cannot receive future benefits until every fraudulent claim and fine is repaid.
Related: if the state says you were overpaid on your own claim, that is a different process — see the South Dakota overpayment guide for waivers, repayment plans and the appeal deadline.
South Dakota — the bottom line
- Report South Dakota unemployment fraud the same day you suspect it — an unreported claim in your name becomes an overpayment in your name.
- South dakota unemployment fraud by a claimant means a knowing false statement; an honest mistake corrected promptly is not fraud.
- Penalties for South Dakota 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 South Dakota?
Use the state fraud page (https://dlr.sd.gov/ra/individuals/report_id_theft.aspx) or call 605-626-7649 (Reemployment Assistance Division, Benefit Payment Control Unit, Aberdeen; fraud reports also go by email to [email protected]).
Someone filed for unemployment in my name in South Dakota — what do I do?
Email [email protected] right away to report a claim you did not file; File a police report and keep a copy for creditors and credit bureaus; Change the passwords on your email and financial accounts; Ask your banks and card companies to place a fraud alert; Review your Social Security earnings statement; Report the theft to the National Center for Disaster Fraud,
and use the IRS Taxpayer Guide to Identity Theft if your taxes are affected
What is the penalty for unemployment fraud in South Dakota?
The monetary penalty is 50 percent of the benefits obtained by fraud for a first offense and 100 percent for each later offense (SDCL 61-6-39). It comes on top of repaying the full overpayment.
Is an honest mistake on a weekly claim fraud in South Dakota?
Fraud requires knowing or willful misrepresentation, and the South Dakota Supreme Court reversed a fraud penalty over a paperwork error (Palmer v. DLR, 2024 S.D.
Official South Dakota Sources & Resources
- South Dakota Department of Labor and Regulation: https://dlr.sd.gov/ra/individuals/default.aspx
- Report unemployment fraud in South Dakota: https://dlr.sd.gov/ra/individuals/report_id_theft.aspx
- South Dakota unemployment statute: SDCL Title 61
- U.S. Department of Labor — Unemployment Insurance: dol.gov
- IRS — Form 1099-G: irs.gov
This South Dakota unemployment fraud guide was last verified against official South Dakota sources in October 2026. Rules change — confirm the current figure with the state agency or a licensed attorney.
More South Dakota Unemployment Guides
- South Dakota Unemployment Overpayment: Waivers and Repayment
- South Dakota Unemployment Appeal: Deadline and Hearing
- South Dakota 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.