Alabama Department of Labor

The Alabama Department of Labor has become the first agency in the United States to instantaneously cross-match Social Security numbers during the process of taking initial claims for unemployment insurance benefits. New System Offers Security and Speed The implementation of a new online computer system helps prevent fraudulent claims for benefits, as well as identity theft, and speeds up the processing of legitimate claims. Alabama is one of only two states to complete certification requirements to use the system required by the Department of Labor (DOL), the agency charged with approval authority. “The technological upgrade enhances the high priority that Alabama Department of Labor places on thorough follow-up of claims for both workers and employers,” says Phyllis Kennedy, Labor director. “Until now, Alabama Department of Labor had no means to authenticate Social Security numbers used by unemployment insurance claimants.” Only authorized personnel in Alabama Department of Labor's four unemployment insurance call centers across the state will have access to the system to verify that Social Security numbers provided by claimants are accurate. The Social Security Administration (SSA) mandates that the Social Security number verification may only be used in the process of taking initial claims and for no other purposes. Social Security Number Authentication Provides Many Benefits Benefits derived from online, real-time verification of Social Security numbers in Alabama include the following:

• Prevention of fraudulent claims for unemployment insurance benefits.
• Through this prevention of fraud, Alabama Department of Labor will help preserve a higher balance in the state's Unemployment Compensation Trust Fund, which may result in lower unemployment insurance rate schedules for employers.
• Prevention of identity theft.
• Faster processing of claims with correct Social Security numbers.
• Detection of illegal aliens.
• Detection of multiple usage of the same Social Security number.
• Identification of applicants who have married or otherwise changed names.

The Alabama Department of Labor Unemployment Compensation Division is built around the central idea that anyone who loses his or her job, through no fault of their own, deserves financial help through the processing of legitimate claims as quickly as possible. Immediate validation of a claimant's Social Security number significantly decreases the likelihood of a fraudulent claim being accepted and processed. If a Social Security number is not verified, the computer system generates a form requesting claimant proof that the number is accurate. That form is mailed overnight to the claimant and failure to respond within 10 days disqualifies the claim. Alabama Department of Labor first began taking steps to access SSA data for cross-matching in May 2004,” says Kennedy. “The DOL approved our data exchange package in February 2005 and the new system was tested and went live in March.”