Publicity on Typical Cases of Fraudulent Claims for Unemployment Insurance Benefits | Real Cases Exposed: Severe Offenses Lead to Imprisonment!
Scenario 1: Concealing the Fact of Re-employment to Continue Receiving Unemployment Benefits Case 1 Yang from Yongcheng Subdistrict, Shifang City, Deyang City, applied for unemployment benefits after being laid off by a company in June 2020. Later in 2020, Yang was elected as a community cadre (serving as a community party committee member and neighborhood committee member) with a fixed salary, but failed to proactively report this employment status and continued to receive unemployment benefits. Yang illicitly received benefits for 17 months, totaling 27,700 RMB.
Result: Yang received a serious internal Party warning and fully refunded the over-claimed unemployment insurance benefits.
Case 2 From January to September 2024, Chen was successively employed by three different companies but concealed this fact to continuously claim unemployment benefits. Chen fraudulently obtained 17,928 RMB in unemployment benefits and 3,748.08 RMB in paid medical insurance premiums, totaling 21,676.08 RMB.
Result: The People's Court of Beilun District, Ningbo City, Zhejiang Province, sentenced Chen to one year in prison and a fine of 3,000 RMB for the crime of fraud, and ordered full restitution.
Scenario 2: Using Shell Affiliations to Defraud Unemployment Benefits Case 3 Yang registered two shell companies, recruited individuals online, fabricated labor relations, made short-term social security contributions, and forged "involuntary resignations." Through these actions, Yang fraudulently claimed over 5.37 million RMB in unemployment benefits for more than 500 people, profiting from processing fees.
Result: In April 2024, the People's Court of Longhua District, Shenzhen City, sentenced Yang to 12 years in prison and a fine of 50,000 RMB for the crime of fraud, in accordance with Article 266 of the Criminal Law of the People's Republic of China, and confiscated all illegal gains.
Case 4 After registering a company in Shenzhen, Huang Zhong posted advertisements in WeChat groups offering to "fabricate social security affiliations to claim unemployment benefits on your behalf." Using the company's social security account, Huang fabricated labor relations for 62 unqualified individuals, paid short-term premiums, and then falsely reduced the workforce citing "resignation against one's own will" to help them claim benefits, charging an agency fee of over 300 RMB per order.
Result: In January 2024, the People's Court of Bao'an District, Shenzhen City, ruled that Huang Zhong committed the crime of fraud, sentencing him to 10 years in prison and a fine of 50,000 RMB.
Scenario 3: Voluntarily Resigning but Forging Certificates and Materials to Defraud Benefits Case 5 To claim unemployment benefits, Zhan and Guo from Shenzhen forged labor contracts and bank payroll statements, submitting them to the social security window to defraud benefits. After verification by the social security department and banks, all materials were confirmed to be forged. Zhan fraudulently claimed 4,956 RMB, and Guo claimed 2,478 RMB.
Result: Both individuals fully refunded the fraudulently claimed unemployment insurance benefits. In accordance with Article 88 of the Social Insurance Law, the Shenzhen Municipal Human Resources and Social Security Bureau imposed an administrative penalty of a fine equal to twice the defrauded amount: Zhan was fined 9,912 RMB, and Guo was fined 4,956 RMB.
Case 6 Bu from Hunan forged the official seals of multiple companies to produce false "Certificates of Termination of Labor Contracts" for 17 people. Bu altered the reason from "voluntary resignation" to "involuntary unemployment" (such as company layoffs or dismissals) and forged supporting materials like resignation approval forms and payroll statements. This created a complete "chain of evidence of unemployment," defrauding 118,700 RMB.
Result: The court sentenced Bu to three years and eight months in prison and a fine of 40,000 RMB for the crime of fraud. All co-defendants were held accountable; 108,900 RMB was recovered, and the remaining funds continue to be pursued according to the law.
Statutory Grounds for Suspension of Benefits According to Article 51 of the Social Insurance Law of the People's Republic of China, if an unemployed person experiences any of the following circumstances while receiving unemployment insurance benefits, the receipt of unemployment insurance benefits shall be suspended, and the enjoyment of other unemployment insurance benefits shall be stopped concurrently:
Re-employment;
Enlistment in military service;
Emigration abroad;
Enjoyment of basic pension insurance benefits;
Refusal, without justifiable reasons, to accept suitable work introduced or training provided by departments or institutions designated by the local people's government.
āļø Please Keep in Mind: The Legal Consequences of Insurance Fraud 01. Administrative Penalties (Social Insurance Law of the People's Republic of China)
Article 88: Whoever defrauds social insurance benefits by means of fraud, forgery of certification materials, or other means shall be ordered by the social insurance administrative department to refund the defrauded social insurance benefits and shall be fined not less than two times but not more than five times the defrauded amount.
Article 94: Whoever violates the provisions of this Law, constituting a crime, shall be held criminally responsible in accordance with the law.
- Criminal Penalties (Criminal Law of the People's Republic of China)
Article 266: Whoever defrauds public or private property, if the amount is relatively large, shall be sentenced to fixed-term imprisonment of not more than three years, criminal detention, or public surveillance, and shall also, or shall only, be fined; if the amount is huge or if there are other serious circumstances, the offender shall be sentenced to fixed-term imprisonment of not less than three years but not more than ten years, and shall also be fined; if the amount is especially huge or if there are other especially serious circumstances, the offender shall be sentenced to fixed-term imprisonment of not less than ten years or life imprisonment, and shall also be fined or have their property confiscated.
- Clear Definition by National Legislation
Legislative Interpretation by the Standing Committee of the National People's Congress (April 24, 2014): Defrauding social security benefits such as pension, unemployment, medical, work-related injury, and maternity insurance through fraud, forgery of certification materials, or other means constitutes the act of defrauding public or private property as stipulated in Article 266 of the Criminal Law, and shall be convicted and punished as the crime of fraud!
Warm Reminders Agencies claiming benefits on your behalf are traps. Organizing insurance fraud is convicted based on the total amount defrauded; an amount of 500,000 RMB directly results in a sentence of over ten years.
Claiming unemployment benefits is officially processed for free. You do not need to spend money or hire anyone to do it for you.
Big data comparisons are normalized. Shell affiliations, concealed employment, and forged materials will be caught with 100% accuracy upon investigation.
If you have already claimed benefits in violation of regulations, voluntarily refund and report it to seek leniency.
Enterprises must properly secure their social security accounts to prevent them from being used by others for insurance fraud crimes.