Kentucky stops changes to unemployment banking information to fight fraud

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In this photo illustration, a person files an application for unemployment benefits on April 16, 2020, in Arlington, Virginia. (Photo by OLIVIER DOULIERY/AFP via Getty Images)

FRANKFORT, KY (WOWK) – The state of Kentucky announced Friday it is temporarily stopping unemployment insurance claimants from making changes to bank account information on file with the state.

The Kentucky Office of Unemployment Insurance (OUI) says it’s taking the action to prevent fraudulent claims.

Officials say they’ve been contacted by legitimate unemployment insurance recipients who said unauthorized changes had been made to their bank accounts in recent days.

OUI officials say they believe the cases are isolated, but occurs when criminals use simple PIN numbers, like 1111 or 1234, created by the legitimate account holders.

Going forward, OUI will require new and existing claimants to create more complex PIN numbers. In addition, all new UI claimants will only be paid by paper check effective immediately.

Every UI claimant receiving direct deposits from OUI should log into their account immediately and check their payment method on file. If it appears incorrect, they should opt to receive future payments via paper check.

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