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Fraud probe is focus of Labor & Industry conference

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Questions about the ongoing PUA fraud investigation dominated Labor & Industry’s weekly virtual news conference Monday afternoon.

A little before Memorial Day weekend, word came down that out-of-state scammers had made fraudulent unemployment compensation claims through the federal Pandemic Unemployment Assistance program administered in Pennsylvania. Department secretary Jerry Oleksiak reiterated that the state’s system had not been breached and that Pennsylvania PUA claimants “probably are not aware” that their identities had been taken during the COVID-19 pandemic.

He advised claimants “to keep a close eye” on their credit ratings through annualcreditreport.com.

Susan Dickinson, director of L&I’s Unemployment Compensation Benefits Policy, said checks mailed to PUA claimants “uncovered” ID theft. For now, L&I is mailing checks to PUA claimants, but she said L&I will transition to sending debit cards, where benefits will be disbursed.

The PUA program is for self-employed, independent contractors, gig workers and others who – when out of work – usually are not eligible for regular UC. PUA is a new program that was set up early in the pandemic through the CARES Act.

Pressed on whether the scammers are from the United States or foreign nations, Oleksiak pleaded the Fifth. “I wish I could answer that, but this is an ongoing criminal investigation, so I’m not sharing information.”

He had essentially the same response when another reporter said an estimated 53,000 to 58,000 Pennsylvanians had been affected by the scam. “I will not relate any numbers.”

Oleksiak advised individuals who suspect they may have been victimized “to contact your credit reporting agency or your credit card company. A bank can help. Say what has happened that you know of.”

An estimated 2.5 million Pennsylvanians have filed initial claims for UC benefits. The secretary was unable to provide age ranges for those who have been hit hardest, but said industries that have suffered most have been “entertainment, leisure, restaurants, health care in some areas, manufacturing in some areas.”

The state’s current jobless rate is 15.1%, which will be updated June 19 when the May numbers are released.

Here are weekly employment figures, since mid-March, courtesy of L&I:

  • Claimants have received $14 billion in benefits ($7.6 billion from regular UC; $5.3 billion in FPUC; $945 million from PUA);
  • 2.5 million total unemployment compensation claims have been filed (2 million for regular UC, 500,000 for PUA);
  • UC has added 312 new staff (for a total of 1,491);
  • 218,000 calls have been answered by IBM Watson, an automated virtual phone assistant taking common UC questions.

L&I will have its third consecutive weekly virtual town hall at 1 p.m. Thursday. To participate, visit https://access.live/PAlabor or call 833-380-0719.

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