09/02/2026
A very real new scam has been introduced which could have a very serious impact on injured workers. Details are below in a press release issued by the Department of Inspections, Appeals, and Licensing:
FRAUD ALERT: Workers’ Compensation Claimants Targeted with Fake Hearing Notices and Fee Demands
DES MOINES – The Department of Inspections, Appeals, and Licensing (DIAL) is warning the public about an active scheme targeting individuals receiving or seeking workers’ compensation benefits. Scammers have impersonated State regulatory authorities, conducting bogus hearings and using official-looking correspondence to try to deceive injured workers into paying fictitious upfront fees.
In a recent reported incident, an injured worker was contacted via a fraudulent letter on counterfeit letterhead designed to mimic the Workers' Compensation Division of DIAL. The worker contacted the scammers who scheduled and conducted a "hearing" with the worker. After the hearing took place, the scammers notified the worker that he had prevailed and was entitled to more than $180,000 in benefits. The scammers issued a “decision” on what appeared to be DIAL letterhead. However, the “decision” required the worker to pay $6,000 in upfront fees before release of the awarded funds.
Fortunately, the worker contacted DIAL to confirm the legitimacy of the award and upfront payment. DIAL was able to let the worker know that this was a very elaborate scam and advised him not to send any money.
Key Warning Signs of the Scam
• Demands for Upfront Payment. Legitimate State agencies and administrative law courts never require cash payments, wire transfers, or upfront fees to release a workers’ compensation award or settlement.
• Forged Letterhead. Fraudsters frequently copy state agency logos and letterhead to appear authentic. Always verify the source directly using officially published contact numbers.
• Pressure Tactics. Scammers often create a false sense of urgency, claiming that funds will be forfeited if the requested fee is not paid immediately.
What to Do If You Receive Suspected Fraudulent Communications
• Do NOT Send Money. Never transfer funds, wire money, or provide gift card codes to secure a settlement or legal award.
• Verify Directly. Contact DIAL or your workers' compensation attorney directly using verified contact details found on official State websites, not the numbers or email addresses printed on the suspicious document.
• Report the Incident. File a complaint with local law enforcement and report the fraudulent communication to the Iowa Attorney General’s Consumer Protection Division at 1.888.777.4590 or online at https://link.edgepilot.com/x/pJlgIPr8ShgB45GOpKIhGA8?u=http://www.iowaattorneygeneral.gov/.
If you or someone you know has been targeted by a similar scam, retain all letters, emails, and phone numbers involved to assist authorities with their investigation.
The Iowa Department of Inspections, Appeals, and Licensing is committed to protecting the health and safety of Iowans through regulation and oversight of health care, food, gaming, building and construction, and labor practices; professional licensure; application of administrative law; and investigation of Medicaid and welfare fraud.
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For more information, contact Stefanie Bond (515.281.7376) or Diane McCool (515.249.7074), [email protected].
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