Michigan UIA Warns of Phone Scam Demanding Fee for Unemployment Benefits
The Michigan Unemployment Insurance Agency (UIA) has issued a consumer warning about a wave of scam calls from individuals purporting to be agency employees. According to the UIA, these callers are seeking to deceive residents into paying a one-time fee in exchange for access to unemployment benefits they claim are owed.
In one reported instance, a Michigan resident was told by a caller identifying themselves as a UIA human resources manager that they needed to pay a $105 fee to receive $4,000 in benefits the agency allegedly owed. The call reportedly came from a number with a 313 area code, and the scammer provided an employee number, according to the UIA. The same incident was reported by the Detroit Free Press, which described the caller as claiming to be a UIA manager and the fee as part of a scheme to collect over $100 from jobless residents.
The UIA emphasized that it never charges a fee to release benefits and that there is no cost to apply for unemployment insurance. In a statement, Michigan UIA director Jason Palmer said: "There is no end to the ways criminals prey on people to try to steal their money." He added, "You will never be asked by the UIA to pay a fee to access the money you were approved to receive."
How the Scam Works and What the UIA Advises
The scam involves callers claiming victims are owed unemployment benefits and demanding an up-front fee or payment to release the funds. Crime rings can manipulate caller ID to make calls appear local and legitimate, according to the Detroit Free Press. The outlet also noted that such scams are not new, citing a 2024 UIA alert about criminals accessing cellphones to change bank information and a 2021 U.S. Justice Department warning about fake websites mimicking state agencies.
To avoid falling victim, the UIA encourages anyone receiving a suspicious call to hang up immediately and report it to both the agency and local law enforcement. The agency recommends calling its customer service hotline at 866-500-0017 to verify legitimacy. Claims with active or previous unemployment claims can ask customer service to review their claim's current standing.
Officials stress that the UIA corresponds with claimants through the secure Michigan Web Account Manager (MiWAM) or by regular mail—not by random calls, texts, or emails. There are two official ways to receive benefits: a U.S. Bank debit card or direct deposit to a personal bank account.
Broader Context: Employment Scams and Fraud Trends
The warning follows a report from the Unemployment Insurance Integrity Center, part of the U.S. Department of Labor, which highlighted similar scams in other states. The center cited an "artificial intelligence-driven" fraudulent call operation targeting North Dakota residents that claimed $4,000 in unclaimed benefits were available, aiming to collect personal information.
The Detroit Free Press also presented statistics about job scams: in 2025, the Federal Trade Commission reported $79.5 million lost to job scams, and the FBI's Internet Crime Complaint Center reported nearly $13 million lost to AI-involved employment scams. The outlet also noted signs of job scams, including online-only processes, emails from Gmail accounts, and requests for online tasks or fake checks.
The newspaper also connected the warning to broader Michigan labor data: the state's seasonally adjusted unemployment rate was 4.9% in July, down from 5% in June, while the national rate dipped to 4.1%. Additionally, beginning July 19, Michigan requires unemployment recipients to show they are searching for work three times weekly, up from once.
Notifications and Reporting
The UIA advises residents to exercise caution: do not click links in random emails or texts appear from the agency, do not respond to unsolicited messages claiming to be from the UIA, and never share personal information over the phone with unknown callers. Residents should stay up-to-date via their MiWAM accounts and report fraud through the Michigan.gov/UIA homepage.
The agency's message is clear: legitimate unemployment benefits come with no hidden fees, and scammers are seeking to exploit those confused or desperate. If a call seems suspicious, the UIA says hang up and verify directly.