It is an overpayment if you receive unemployment compensation payments from your state's unemployment office in excess of what you are due. If this happened through no fault of your own, the office considers it "non-fraud." It may adjust future payments to correct the error, or you may have to repay the money. You still can file for benefits in the future without being penalized. The overpayment is fraudulent if it occurred because you deliberately withheld or falsified information to receive unemployment compensation. In this case, you must repay the money and satisfy any penalties before you can receive benefits.
Penalties for Fraud
In each state, the penalties for unemployment benefits fraud vary depending on the amount of overpayment and seriousness of your actions. The state's unemployment office charges a percentage of the overpayment plus the overpaid money as a penalty. It could also disqualify for several weeks those individuals who have given false statements to receive the compensation. They can receive benefits again after the disqualification period if they qualify again and have settled the debt. If you don't repay the overpayment and penalty promptly, the office can withhold the benefits you are to receive or deduct a percentage from your future payments until the amount has been paid in full. It could also take additional steps, such as withholding any money due you from the state like lottery winnings or tax refunds, filing a claim against you, or placing a lien on your property.