Spike in unemployment fraud claims in Colorado are holding up those who need it

DENVER, Colo.(KRDO) - A new surge in fraudulent unemployment claims in Colorado is leaving thousands who actually need it on the waiting list.

The Colorado Department of Labor and Employment (CDLE) said they're seeing a huge spike in fraudulent claims in just the last few months alone. As a result, nearly 5,800 unemployed Coloradans who are seeking benefits, can't get their money because of it. 

The department said it's the most claims of fraud they've seen since the heart of the Covid-19 pandemic.

Since April 1, the department said they've seen 62,000 initial claims of unemployment, and of those about 22,000 have been tabbed as fraudulent. Among those 22,000 put on hold, 5,766 are active unemployment claims. 

The department believes that among those are many legitimate claims, that have now been held up due to the influx of applications. 

The CDLE says they've been working over the last 6 weeks to identify those legitimate claims and move them for release to get help to the people who need it.

If you believe someone has filed an unemployment claim in your name, the department encourages you to report it to them as soon as possible, using their fraud report site.

As of now, however, they don't have a clear timeline on how long it will take to get through the backlog.