I have been on unemployment for 8 months and now I have a direct sales job and will be getting another 1099. How does the unemployment bureau know when I started the direct sales job and doesn't think that I was earning money while collecting unemployment?

If you get paid, even 1099 you are earning money, you have to report any income

The 1099 income is reported so they will know it, had a friend of mine owe large fines and had to repay all of the unemployment they got during the time they had earnings

They will NOT know, initially, but eventually they will figure it out.