We've all heard plenty of warnings about job scams. Now, here's a very troubling warning about ways that the jobless could easily lose $100 or more.
A new scam, possibly one fueled by an artificial intelligence-driven call center, is targeting Michigan residents by claiming that all they have to do is pay an up-front fee to collect some pretty lucrative cash that's supposedly owed to them by the Michigan Unemployment Insurance Agency.
One Michigan consumer reported receiving a call from someone claiming to be a UIA manager who indicated that the agency owed the resident about $4,000. First, though, the Michigan resident would have to pay a $105 fee. This call reportedly came from a 313 area code.
Well-versed crime rings, of course, know precisely
how to mask their identities on caller ID to appear that they're local and legitimate.
If you get one of these calls, don't be tempted for even a minute to hand over some money or ID information. Hang up and save your cash.
What to do if you receive a fake Michigan UIA call or text
UIA recommends that anyone who receives a call, text or email that appears to be fake should hang up and call the agency’s customer service hotline at 866-500-0017 immediately to verify whether the call is legitimate.
Anyone who has an active or previous unemployment claim is able to ask the customer service staff to review and verify their claim’s current standing. The UIA corresponds with anyone receiving unemployment benefits through their secure Michigan Web Account Manager (MiWAM) account or by regular mail. The UIA isn't texting you, emailing you, or calling out of the blue.
The UIA does not charge a fee to release unemployment benefits to anyone who qualifies for payments. There is no cost to apply for benefits.
“There is no end to the ways criminals prey on people to try to steal their money," said Jason Palmer, director of the Michigan UIA, in a statement.
"You should be cautious if you are contacted randomly by someone who says they are from the UIA and offering you money.”
Individuals receive unemployment benefits in the state of Michigan two ways if they qualify: Benefits are posted to a debit card from U.S. Bank. Or you receive benefits by direct deposit to your own bank account.
A new jobless scam appears on the horizon
Oddly enough, the phone scam in Michigan mirrors an alert by the Unemployment Insurance Integrity Center, which is part of the U.S. Department of Labor. The center said an artificial intelligence-driven fraudulent call operation targeted North Dakota residents telling individuals that $4,000 in unclaimed unemployment insurance benefits was available to them. The caller then would try to collect personally identifiable information from the targeted victim.
Crooks aren't always asking for cash up front. Sometimes, they're impersonating employees of state unemployment agencies to ask for your Social Security Number or other information that can be used to commit fraud down the line.
Over the years, we've heard other unemployment-related scams where crooks try to steal personal information, including putting fake unemployment forms online.
Another scheme, according to a Michigan UIA alert in 2024, involved criminals gaining access to cellphones to ultimately change bank account information.
That earlier alert noted: "Once a thief has mirrored a victim's cell phone, they can read email notifications, get into financial accounts, or change information such as bank routing numbers. In the case of unemployment claims, just before a worker must certify for bi-weekly jobless benefits, criminals will change direct deposit information to a bank account they control. Money is then automatically sent to the criminal's account instead of the bank the worker uses."
In 2021, the U.S. Justice Department warned of fake web sites that mimicked the legitimate websites of state unemployment agencies as a way to steal important ID information that could be used for other forms of fraud.
Then, fraudsters would send spam text messages and emails purporting to be from a state workforce agency and containing a link. The objective was to trick consumers into thinking they were applying for unemployment benefits. Once someone disclosed personal data, that information could then be used by fraudsters to commit identity theft.
As some industries see layoffs, we're likely to see more job scams — and scams relating to unemployment benefits. Higher prices mean some families also are looking for a second paycheck to make ends meet.
Michigan’s seasonally adjusted unemployment rate was 4.9% in July, down from 5% in June, according to data released Aug. 20 by the Michigan Department of Technology, Management & Budget.
The shift reflected both a decrease in both unemployment and decline in the total workforce during July. The national unemployment rate was 4.1% in July, down from 4.2% in June.
Many people can be hit by scammers when they're searching for work, too.
In 2025, the Federal Trade Commission said $79.5 million was reported lost by consumers to some sort of job scam. In many job scams today, con artists are impersonating recruiters and sending flattering emails to their targets. The emails are written just well enough to get some job hunters to respond.
In 2025, those who filed reports with the FBI's Internet Crime Complaint Center reported losses of almost $13 million to AI-involved employment type scams.
What are some signs of a job scam?
Some big clues relating to job scams:
- Every step involving a fake job is done online from the minute you're recruited, interviewed and hired. And you might never be asked for professional references.
- Emails sent by fraudsters often come from a Gmail account. Many big companies prohibit employees from using Gmail for work due to security concerns.
- In some cases, you might be recruited to do a series of online tasks. Maybe, you're asked to open a bank account. Or complete a crypto transfer.
- Many times, you might be sent a check in advance to buy computer equipment. Often, the check is a fake check that will bounce at some point along the way, leaving you out the cash.
How to avoid scams when applying for unemployment benefits
Scammers often create a sense of urgency. But you never want to click on links in random emails or texts that appear to be from your bank or the state's unemployment insurance agency asking you for a username and log-in.
Remember, we may be talking about some new rules involving collecting unemployment benefits in Michigan. But the state has not added a new fee to apply for benefits.
Beginning July 19, those who receive unemployment benefits in Michigan must show that they're looking for work three times each week to continue getting the financial aid. That's up from an earlier requirement to prove that they looked for work once a week.
The agency has a full list of such work search activities that would qualify and examples of documents required to show proof of the activities. Go to bit.ly/UIAworkactivities.
Some tips for avoiding jobless benefits scams:
- Take time to verify anything with the UIA if you receive an email or phone call that purports to be from the agency.
- Remember, the UIA never randomly texts claimants or employers. Do not respond to random texts claiming to be from the agency and asking for information or providing a link to click. Delete the text and report it as spam.
- Do not share any personal information if you receive a random call claiming to be from the UIA.
- Stay up to date with your MiWAM account by monitoring correspondence or requests for information from the UIA.
- Report unemployment fraud by clicking on the Report Fraud or Identity Theft link on the Michigan.gov/UIAhomepage.
Contact personal finance columnist Susan Tompor: stompor@freepress.com. Follow her on X @tompor.
This article originally appeared on Detroit Free Press: Michigan UIA warns of scammers asking for cash up front for big payouts
