Generally, a person is without fault if an overpayment occurs due to an error in computing insured status. If, however, an earnings record is fraudulent (whether or not the fraud was committed for the purpose of obtaining benefits), a finding of without fault cannot be made unless it is clear that the person was not involved in the fraud.

Marcus Burnett, the applicant, was denied retirement benefits because one additional QC was needed to be insured. The applicant made arrangements for their sibling to report that Marcus earned $600 although no work was performed. Marcus reapplied for and was awarded benefits the next year. It was later discovered that Marcus did not work for that income and, therefore, should never have received benefits. Since Marcus had fraudulently obtained insured status, the individual is at fault for their overpayment.