Why It’s a Bad Idea to Fake Your Job Search to Stay on Unemployment

If you’ve been receiving unemployment benefits, you’re not alone. As of July 2025, the U.S. unemployment rate stands at 4.2%, with approximately 7.2 million Americans unemployed. While these figures reflect a relatively stable labor market, they also highlight the ongoing challenges faced by job seekers. Unfortunately, periods of high unemployment often coincide with a rise in unemployment fraud, making it crucial to understand the risks and responsibilities associated with claiming benefits. 

Unemployment Scams on the Rise

The COVID-19 pandemic, now five years behind us, created a unique set of challenges that continue to influence unemployment systems today. During the pandemic, expanded unemployment programs were introduced to support millions of Americans, but they also opened the door for increased fraud.

While the immediate crisis has passed, unemployment scams and fraudulent claims remain a concern. States, which are responsible for managing unemployment claims, have since implemented stricter measures to combat fraud. However, the requirements for filing for and receiving unemployment benefits still vary by state, making it essential for claimants to stay informed and compliant.

Active Job Search Requirements

Although every state requires you to search for a job while receiving unemployment benefits, there isn’t consistency in how to prove you’re looking for a job or what constitutes searching for a job.

However, job search requirements usually involve job seekers conducting a minimum number of work search contacts each week. It’s also common for states to require unemployment benefit applicants to fill out, submit, and retain a work search log to prove they’ve fulfilled work search requirements. You may be wondering, “Does unemployment really check work search logs?” and the answer often is “Yes.”

That’s why it’s crucial that you check your state’s requirements for active job search and unemployment benefits and contact a legal professional to ensure you’re meeting all necessary compliance obligations. Again, while it will vary state by state, the following activities count as a work search requirement:

• Applying for a job
• Interviewing for a job
• Registering for work with a private staffing firm
• Registering for work with a state center
• Attending an in-person or virtual job fair or job search seminar
• Sending your resume to a prospective employer that has job openings

Remember, what may be considered a valid work search activity in one state may not be considered one where you live. In addition, you need to review how you can prove you’re meeting job search requirements in your state.

Can You Fake Your Job Search?

While the answer to this is technically yes, you really shouldn’t lie about searching for jobs while receiving unemployment benefits. Faking your job search and continuing to receive unemployment benefits is considered unemployment fraud, and you run the risk of being investigated by unemployment authorities.

The penalties for unemployment fraud vary by state, but every state is required to assess a penalty of at least 15% of the amount of total fraudulent unemployment benefits collected, according to the DOL.

In addition to the monetary penalty, most states will criminally prosecute those who commit unemployment fraud, with punishment including fines and/or incarceration. In some cases, other penalties include prohibiting future eligibility for unemployment benefits and requiring the forfeiture of future income tax refunds. Finally, unemployment fraud cases and unemployment scams can be federally prosecuted by the U.S. Department of Justice.

As you can see, faking your job search to continue to receive unemployment benefits is a crime that carries a hefty punishment. Moreover, faking your job search by applying for jobs and not responding to interview requests (or worse, not showing up for interviews) does more harm than good. Simply put, this can damage your personal brand and burn bridges with potential employers. Therefore, you should never fake your job search to stay on unemployment.

Can I Apply for Unemployment If I Quit My Job?

Typically, you are only eligible to receive unemployment benefits if you’re fired from your job. However, many states allow employees who have quit their jobs for “good cause” to be eligible to collect unemployment benefits. What constitutes good cause will vary by state, so be sure to contact your state’s unemployment office with further questions.

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What Else Should You Avoid Doing While Unemployed?

In addition to not committing unemployment fraud, there are a handful of other things that you should not do while you’re unemployed. These activities include being overly picky in your search, applying for jobs with an outdated resume, neglecting your professional network, and “ghosting” employers. Keeping these tips in mind can help you lead a successful job search.

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