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STRUZZI, SMITH JOIN EFFORT TO URGE MULTIPLE GROUPS TO INVESTIGATE UC FRAUD

By Hometown2 Jul 28, 2021 | 7:16 AM

With the surge in unemployment compensation fraud cases in Pennsylvania, Indiana County’s state representatives are joining a group of fellow house members to request an investigation.

The letter signed by both Jim Struzzi and Brian Smith, along with 14 other state representatives was sent Tuesday to PA Attorney General Josh Shapiro, Labor and Industry Secretary Jennifer Barrier, Auditor General Tim DeFoor, Revenue Secretary C. Daniel Howell and State Treasurer Stacy Garrity.

Barrier said that these fraudulent claims stem from data breaches outside of L&I’s control, and calls them “frustrating” in a statement. She also reminds residents to stay vigilant of fraud and to report any and all cases to law enforcement.

It asks the agencies to “take prompt and decisive action in stemming the overwhelming wave of fraudulent UC claims that have adversely affected our constituents, both employees and employers, in recent days.”  Indiana County has seen its share of these cases through local and state police, where people’s identities are stolen and fraudulent claims are made.

The letter states that everything should be done to restore integrity to the UC system, and the representatives called it “unacceptable that so much time and effort is being spent to process fraudulent claims at the expense of innocent victims who have not filed claims, and those who are waiting to have legitimate claims processed.”

They would like to see a multi-agency task force put together to hunt down those responsible for the fraud, implement anti-fraud technology and procedures, conduct an audit of UC processes during the pandemic and get an accounting as to how much tax money is being spent approving fake claims and being stolen by criminals from the UC fund.

Pennsylvania State Police Bureau of Criminal Investigation Director Major Jeremy Richard reminds residents that it can happen to anyone. He adds that “if you’ve been a victim, don’t be embarrassed. Instead, report it to law enforcement.”

Below is the full statement from the Pennsylvania State Police:

PSP Warns Fraudsters are Using Information Stolen from Private-Sector Data Leaks to Apply for Unemployment Compensation Benefits
 
Harrisburg, PA – Department of Labor & Industry (L&I) Secretary Jennifer Berrier, Pennsylvania State Police (PSP) Bureau of Criminal Investigation Director Major Jeremy Richard, and Department of Banking and Securities Deputy Secretary for Financial Services Tim Arthun today reminded Pennsylvanians to be vigilant of fraud and the warning signs and steps to take if they become a victim.
“Fraud is an unfortunate byproduct of any disaster, and we are seeing the proof of that during the global COVID-19 pandemic,” said Secretary Berrier. “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.”
Across the nation, fraudsters have been applying for unemployment benefits using stolen identities that were obtained in data breaches that occurred outside of 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 individuals 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.
L&I utilizes numerous fraud-detection measures, including using virtual identity verification vendor ID.me to verify the identities of all new unemployment applicants. Since the new UC benefits system went live June 8, we have prevented approximately $1 billion in state and federal dollars from being paid out to fraudsters.
L&I 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.
“Realize it can happen to you,” said Major Richard. “If you have been a victim, don’t be embarrassed. Instead, report it to law enforcement. The Pennsylvania State Police works closely with its local, state, and federal law enforcement partners to investigate fraud, identity theft, and scams. The sooner law enforcement knows, the better the chances are of recovering your money and catching the scammers.”
For more information on the Pennsylvania State Police, visit psp.pa.gov.
“Unfortunately, scams and fraud are growing more common while also becoming increasingly more sophisticated,” said Deputy Secretary Arthun. “If you are being contacted unexpectedly with a request for your personal or financial information with promises of something that seems too good to be true, it likely is.”
Anyone can 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.
Visit www.uc.pa.gov and click on “fraud” to learn the warning signs of unemployment benefits fraud, how to report it, and the steps you should take if you become a victim.
You can report news by emailing us at news@wccsradio.com.

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