Labor Officials Warn of Workers’ Compensation Scam Targeting Injured Workers

Can You Believe It?

Salt Lake City, UT (WorkersCompensation.com) – Labor officials from Tennessee to Texas are warning workers about new scams targeting individuals who have filed workers’ who have been injured on the job.

In Utah, officials warned workers the scammers are impersonating representatives from the Utah Labor Commission, the state’s Industrial Accidents Division, the U.S. Department of Labor, among other government agencies to separate injured workers from their money. The scammers reach their victims via text messages, phone calls, emails and video calls and use tactics designed to appear real. The scammers will even use official looking logos from state and federal agencies or pose at attorneys and judges.

The victims are told that they must pay fees in order to settle their claims and receive their benefits.

“We want Utahns to know that this is a scam,” Eric Olsen, communications director for the Utah Labor Commission, said in a statement. “No legitimate workers’ compensation process requires upfront payment to receive benefits.”

Officials in Oregon confirmed that at least one case of workers compensation claim scams had been reported in that state. In a press release, the Oregon Bureau of Labor and Industries (BOLI) said Spanish-speaking workers were at greater threat of being targeted for the scams

The Oregon Department of Consumer and Business Services warned about the scams in February after workers in Idaho and Montana were targeted. But the BOLI said one case was confirmed in Oregon within the last two weeks. BOLI said it was unable to provide additional information about the case, but was keeping an eye out for more confirmed cases.

Oregon officials said in addition to regular channels of contact, scammers sometimes contact workers through social media apps like Facebook Messenger or WhatsApp to try to convince workers to show up to sham online workers’ compensation hearings. Some of the fake hearings may even feature people posing as judges and attorneys, the agency said.

Once the workers participate in the hearing, they are told they have to pay money to receive benefits or to settle a claim.

In a press release, BOLI Commissioner Christina Stephenson said the agency does not charge workers to file a wage claim or civil rights complaint, and will never ask workers to pay for benefits, hearings or settlements.

“When workers know their rights, they are less vulnerable to fraud,” Stephenson said in a statement. “We want every Oregonian to have the tools to spot these scams and protect themselves.”

The scammers are also active in Tennessee. The Tennessee Bureau of Workers’ Compensation released a statement in late February warning about the scam and warned that individuals may contact injured workers claiming to be employees or officials with the Tennessee Court of Workers’ Compensation Claims.

And in Texas, the Texas Department of Insurance, Division of Workers’ Compensation issued a scam alert about scammers using the same tactics.

“The Division of Workers’ Compensation, or DWC, emphasizes that no worker in Texas is ever required to pay to receive their benefits. The agency and its insurance carriers never request money through wire transfers, payment apps, or similar services to release workers’ compensation settlements,” the agency said.

DWC said the scammers typically request money through bank transfers or peer-to-peer payment apps like Venmo, Zelle or CashApp. The interactions often involve high-pressure tactics intended to create a false sense of urgency and push victims to provide financial information on the spot or to act immediately.

Officials said outside of pressure to act or pay immediately, workers can spot scams by understanding that the agencies will never ask for money upfront in order to receive benefits or settlements, and that the departments will never reach out to injured workers via social media or text messaging.

Injured workers can always verify communication about their claims by calling the workers’ compensation agencies at the phone number listed on the respective agencies’ websites. Officials also encouraged anyone who thinks they are being scammed to take screenshots of the interaction and report the activity to state labor officials.

“If something feels suspicious, do not send money or personal details. Instead, verify independently by visiting the official Tennessee Bureau of Workers’ Compensation website at tn.gov/workerscomp or contacting them directly using phone numbers and email addresses listed there—avoid replying to suspicious messages, as email addresses can be spoofed,” Tennessee officials said in a press release. “To help stop these scams, report suspected incidents to local law enforcement and file a complaint with the Tennessee Attorney General’s Office, while preserving any related evidence such as messages or payment requests… Early verification and reporting can protect you and prevent others from falling victim.”

Share This Article: