Scammers Steal Identities to Cash in on Pandemic Unemployment Funds

Thieves are prowling Pennsylvania’s unemployment system like vultures over a fresh kill, using stolen identities to siphon off pandemic relief cash meant for laid-off workers. The Pennsylvania Department of Labor & Industry has confirmed a surge in fraudulent claims filed under the Pandemic Unemployment Assistance (PUA) program, where criminals leverage the personal data of employed individuals to claim benefits and funnel the money into their own bank accounts. As the state reels from historic job losses, these predators are exploiting chaos for profit.

Attorney General Josh Shapiro and U.S. Attorney William McSwain issued a joint warning on June 5, 2020, vowing aggressive prosecution of anyone caught gaming the system. Shapiro didn’t mince words: “We will not let anyone ripoff the public and the millions who are out of work.” With nearly one in three Pennsylvanians filing for unemployment during the crisis, the pool of potential victims is vast — and the fraudsters are moving fast, filing claims before victims even know their data has been compromised.

The scam works by hijacking Social Security numbers, birth dates, and employment histories to file for PUA benefits. In some cases, the Department of Labor & Industry initially sent funds to the fraudsters’ accounts, but has since rerouted deposits to the actual named applicants to block the theft. That means victims often discover the crime only when they receive a check or direct deposit they never applied for — a jarring sign their identity has been weaponized.

Shapiro and McSwain are demanding immediate public action: if you get an unemployment check or deposit you didn’t request, do not cash it or spend it. Return the funds following instructions on the DLI.PA.GOV website. Then report the incident — fast. Victims can file a complaint online or call the DLI Fraud Hotline at 1-800-692-7469. Every report feeds a growing investigation by the Coronavirus Fraud Working Group, a multi-agency task force led by the U.S. Attorney’s Office for the Eastern District of Pennsylvania.

“Fraud like this causes great harm to many citizens at a time when they are most vulnerable,” McSwain said. “It is especially intolerable that criminals are trying to take advantage of an unprecedented public health emergency.” His office, alongside the U.S. Department of Labor OIG, the Secret Service, FBI, and Postal Inspection Service, is tracking down these operations with federal firepower.

The message is clear: pandemic pain is not a piggy bank. Law enforcement is watching, tracing, and preparing to charge anyone who dares to profit off the suffering of Pennsylvania’s unemployed. If you’ve been hit by this scam, speak up — your report could be the break investigators need.

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