PA Authorities Warn Of Unemployment Fraud Scams

PENNSYLVANIA — Authorities in Pennsylvania are warning residents of potential unemployment fraud stemming from the coronavirus pandemic.

Fraudsters have been applying for unemployment benefits using stolen identities that were obtained in data breaches that occurred outside state government.

There were more than 11,000 data breaches that caused the exposure of more than 1.6 billion records in the U.S. over a span of about 15 years.

Many people whose personal data was leaked during these breaches are unaware until a fraudster uses their identity to apply for unemployment benefits and they receive notification that a benefits application has been filed in their name.

The Pennsylvania Department of Labor & Industry uses numerous fraud-detection measures, including using virtual identity verification vendor ID.me to verify the identities of all new unemployment applicants.

Since the new unemployment compensation benefits system went live June 8, it has prevented approximately $1 billion in state and federal dollars from being paid out to fraudsters, according to information from the state.

The Department of Labor & Industry works with the National Unemployment Insurance Fraud Task Force and other partners, including the FBI, Homeland Security and additional law enforcement agencies, the state treasury and the state attorney general’s office, to identify and block new fraud methods and stop fraud attempts.

"Fraud is an unfortunate byproduct of any disaster, and we are seeing the proof of that during the global COVID-19 pandemic," Department of Labor & Industry Secretary Jennifer Berrier said. "It’s frustrating that thousands of data breaches that occurred outside of L&I – and outside of the control of consumers who often had no choice but to give companies their personal data – are now resulting in widespread unemployment fraud attempts. We strongly urge everyone to remain vigilant about fraud and to notify authorities of any suspected fraud activity."

Residents contact the Pennsylvania Department of Banking and Securities with questions or complaints about a financial transaction, company, or product at 1-800-PA-BANKS or using the online complaint form.

Residents can learn the warning signs of unemployment benefits fraud, how to report it, and the steps you should take if you become a victim online here.