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Federal, local law enforcement investigating bogus unemployment claims

Federal and local law enforcement are investigating unemployment claims that were filed as part of a scam that's also targeted numerous other states. The Pennsylvania Department of Labor and Industry secretary said on Tuesday they discovered these scam claims this weekend and will now be issuing paper checks to thousands of people on the Pandemic Unemployment Assistance system.

John Policaro of New Brighton reached out to Target 11 after he received two benefit checks totaling more than $8,000 in his mailbox on Friday.

"Shocked actually when I got them, I knew there got to be some mess up," said Policaro.

Policaro said he never filed for unemployment and is actually still working. He said, "I knew what they were right away because I have collected unemployment before and they say benefit check on them."

The Labor and Industry Secretary Jerry Oleksiak said a fraud investigation involving state and federal authorities is underway with its new system, Pandemic Unemployment Assistance (PUA). PUA is part of the CARES Act, which allows self-employed people to apply for benefits. Labor and Industry will be sending additional information to all PUA claimants by mail on Tuesday to ensure they applied and confirm that their personal information has not been compromised.

"None of L&I systems or data have been breached, this is identity theft from most likely before the COVID-19 virus," said Oleksiak.

Oleksiak said the scammers are taking people's names and addresses and applying for benefits, then having the money routed into their own bank accounts. This similar scam is being investigated in other states in possible connection to an international crime ring.

"Those stolen identities include people that are not in the Unemployment Compensation system and did not file for benefits," said Oleksiak. "It is possible that many Pennsylvanians are not aware their identities were previously stolen and should keep a close eye on their credit rating, as well as remain vigilant in protecting their personal information."

Policaro is now on high alert and plans to monitor his information more closely. "People need to be aware of it," he said.

Oleksiak said the unemployment fraud department has been able to track the suspected claims to the IP addresses, but the department would not say how many suspected claims have been filed or paid out.

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Now all PUA recipients will receive paper checks temporarily. Labor and Industry says if you get a check and didn't apply for it, don't cash it and notify the labor department.

Unemployment Compensation Benefits Policy Director Susan Dickinson said people get a check if their account isn't set up in time.

"Those paper checks are going out and we started to notice the more widespread issue we were having," said Dickinson.

Anyone who receives a paper check in the mail and did not file for unemployment benefits in Pennsylvania should not cash the checks. The checks should be returned to:

Department of Treasury Comptroller’s Office

Attn: Mark Accorsi

Room 113, Finance Building

Harrisburg, PA 17120

Anyone who receives a direct deposit and did not file for unemployment benefits in Pennsylvania should not use the funds. The funds should be returned to:

Department of Labor & Industry

651 Boas St., Room 500

Harrisburg, PA 17121

Payments must be made by personal check, cashier's check, certified check, or money order to the "PA UC Fund". The department asks that you include a brief signed statement with the reason you are sending in the payment and include your printed name, address, last four of your Social Security number, phone number and email address.

Cashing the checks or using direct deposited funds knowing that you have not applied for PUA or any other UC program may be deemed fraud and repayment will be required. The department anti-fraud division will continue to cross match data with other state agencies to detect fraud.

Now you may have concerns about someone from the Unemployment Office calling you about your claim. The department said staff will never ask for your full Social Security number, just the last four numbers. Staff will reach out regarding claims and reference content in the original email the claimant provides.

"While claimants should save the main phone numbers for UC and PUA in their phones, they may also see different numbers or 'restricted' in their display when we call due to the software being used by UC staff who are teleworking. It’s important to remember that UC staff will only ask you to verify the last four digits of your Social Security number when we call you,"

A statement from the department says they will need to call claimants at times and recommend people save the department's phone number.

  • 888-313-7284 – regular UC
  • 855-284-8545 – Pandemic Unemployment Assistance (PUA) phone number