Kentucky unemployment website will require users to make a new account. Here's what to do

In an attempt to stem a wave of fraudulent activity aimed at stealing jobless benefits, Kentucky's unemployment office is making all active claimants re-register their online accounts using more complex passwords.

Cyber criminals are using compromised personal information, such as Social Security numbers, and are taking advantage of simple PINs to hack into unemployment accounts and divert payments. 

Kentuckians recently reported their personal identification numbers, used to access their online accounts, had been changed without their knowledge. Some also reported their banking information had been altered. 

On April 9, the state took the sweeping step of shutting down the website Kentuckians use to file new claims and request benefits. The site came back online at 7 a.m. EST Tuesday.

Earlier:In sweeping step to stop fraud, Kentucky to shut down unemployment system to fix problems

Amy Cubbage, Gov. Andy Beshear's general counsel, said last week that officials were still assessing how many current benefit recipients have been affected. 

The state has set up a call center to help people re-register and is also mailing people information needed to set up a more secure account. 

Here's what else benefit recipients need to know about the increased security measures: 

What do I have to do?

All current benefit recipients will need to register again (or, in some cases, for the first time) on the state’s unemployment website. The state is making people re-register and create more complex passwords to better combat fraud.

Even those who recently created an account on the state's new public-facing claimant portal that launched in mid-March will need to go through this new registration process. Here's how:   

• Log on to uiclaimsportal.ky.gov or visit the unemployment homepage, kcc.ky.gov, to start the registration process.
• Create a new 12-character password using a mix of letters, numbers and special characters, such as a question or exclamation mark. 
• Claimants will need an email account. They will need to verify the email address using a process called two-factor authentication. The state will send a code to the email address (you may need to check your spam or junk folder), which claimants will then need to enter during the re-registration process. The state warns that the use of the same email for multiple claims (such as a couple sharing one email) may cause problems with the state's new security features. 
• Use the new eight-digit PIN included in the letter that the state has mailed out.  
• Once successfully re-registered, review all your information and ensure it’s correct.
• A detailed, step-by-step guide to re-registering can be found at kcc.ky.gov and on the Kentucky Career Center's YouTube page. 

What is the state mailing me?

Starting April 9, the Office of Unemployment Insurance began mailing paper letters to all active claimants. This letter contains a new eight-digit PIN that people will need to use when creating their new account.

However, Gov. Andy Beshear said Monday afternoon that “the majority” of recipients would not have received their letters by the time the online portal reopened Tuesday.

As of Monday, 100,000 were mailed. Remaining letters were to be mailed Tuesday, Cubbage said. 

What if I don’t get a letter in the mail?

The state is dedicating up to 150 workers to staff a call center focused solely on helping people re-register for an online unemployment account.

People can call 502-564-2900 between 7 a.m. and 9 p.m. EST starting April 13. Beshear said the call center will operate for 10 days.

Account information changed:Kentucky warns unemployment filers to double-check payment info after reports of hacking

These workers will not be able to help callers with any other unemployment-related questions or issues.

What if I can't get through to the call center? 

Beshear warned of long hold times and noted that the call center will only have 50 people answering calls during the first and last hour of the day.

The governor asked those who aren't due to request benefits this week to hold off on using the call center and instead wait for their letter to arrive in the mail. 

Once your letter arrives with your new PIN, you can complete the process. 

I received a letter but never filed for unemployment. What do I do?

Those who receive a letter with a new PIN but have never sought unemployment benefits may have had a claim opened fraudulently in their name.

Since the start of the pandemic, fraudsters have filed real claims on behalf of real people in multiple states using stolen personal information in an attempt to obtain the unemployment pay. 

More on fraud:Kentucky unemployment system gets just what it didn't need — more fraud

The state encourages people who suspect fraud to report it to the unemployment office using a form on its website, kcc.ky.gov. Click on the yellow button by "Unemployment Insurance Fraud." The site also gives advice and tips for identity theft victims. 

What if I was supposed to request payment while the website was down?

While the state has not issued specific advice for those who weren’t able to request payment when the unemployment system was taken offline, Cubbage said April 8 that "no one will lose out on their chance to request those weeks of benefits."

For those who had to wait to file a new claim, unemployment workers will be able to backdate any new initial claims.

Will I have to refile my claim?

No, do not open a new claim. The new security requirements are to create a new online account, not a new benefit claim.

The state’s computer system will recognize the new registration and link it to existing claims, state officials say.

What if my direct deposit banking information is incorrect? 

Due to fraud, the state has temporarily prevented people from changing their bank account information in their unemployment accounts. 

When going through the re-registration process, if you notice your banking details are incorrect, request your payment to be sent via paper check and make sure your mailing address on file with the state is correct. 

Why did the UI system shut down for four days?

The public-facing online unemployment system was taken offline from April 9 to the morning of April 13 to give the state time "to enhance the security of the system."

Following news reports the week of April 4 about claimants having personal information changed without their knowledge, the state said April 2 the instances were "isolated" and that it would temporarily prevent people from changing their bank account information. 

While benefit recipients were not able to access their accounts, employees in the state’s unemployment office were able to continue working. 

By April 8, the state said the PINs of about 300,000 accounts were reset, though the majority of those were not active claims. 

A much smaller number of people, closer to 25,000, are currently drawing benefits, Cubbage said. 

Who is behind the fraud activity?

Kentucky officials said last week they don’t know the source but suspect the “sophisticated attack” is the work of “criminal individuals or enterprises" that might originate from outside the United States. 

Many states have been hit with fraud. 

An estimated $89 billion may have been paid improperly in the U.S. since the start of the pandemic, with a “significant portion” connected to fraud, according to a March update from the Office of the Inspector General for the U.S. Department of Labor. 

Kansas shut down its system in January for a few days to implement new anti-fraud measures. Illinois residents have reported changed banking information for months. In January, California officials said more than $11 billion in benefits had been paid on fraudulent claims.

Ohio has also reported a spike in fraudulent claim activity this year.  

How is the account hacking happening?

Cybercriminals are using automated programs to guess claimants’ four-digit PINs, Kentucky officials said. Simple and easy-to-guess PINs, such as 1234, make it easier for scammers to gain access to accounts.

Scammers also use compromised Social Security numbers and other personal information to gain access to accounts.

Kentucky officials say such personal information wasn’t stolen in a data breach of the state’s unemployment system but rather was compromised in other breaches, such as those by private businesses. 

This stolen personal information is then sold and bought online and can be misused by criminals. 

I need help with a different unemployment issue. What can I do?

With phone lines jammed and email inboxes flooded, your best bet for getting help is to schedule a one-on-one appointment. 

The state will resume in-person unemployment appointments April 15. 

Thirteen Kentucky Career Centers across the state are reopening that day for unemployment claim help, by appointment only. Officials have told the public not to show up at these centers without an appointment, as they won't be helped.

• You must wear a mask at all times during the appointment.
• Citing the ongoing pandemic, the state asks people to stay in their vehicle until five minutes before their appointment.
• Bring a photo ID.
• Temperatures will be taken at the door.

Scheduling began April 7. Within one day, people made 9,500 appointments for April 15-30. As of Tuesday, no appointments were available.

Where are the offices reopening?:Kentucky regional unemployment offices opening this month for in-person appointments

At midnight April 19, the state will open appointments for May 3. Each day after, a new day's worth of appointments will be made available online.

Appointments are being offered in: Ashland, Bowling Green, Covington, Elizabethtown, Hazard, Hopkinsville, Lexington, Louisville, Morehead, Owensboro, Paducah, Prestonsburg and Somerset. 

It's possible that your issue won't get immediately or fully fixed at your appointment. There may be paperwork to fill out and process or UI workers may need more time to resolve your claim's issue, according to the state. 

Reporter Matthew Glowicki can be reached at mglowicki@courier-journal.com, 502-582-4989 or on Twitter @mattglo.