Jan. 9—WILKES-BARRE — The Department of Labor and Industry (L&I) has detected an escalation in fraudsters' attempts to steal unemployment compensation benefits through increasingly aggressive and sophisticated schemes.

An examination is underway to determine the source of these attacks and the precise methods fraudsters are using to intercept legitimate UC payments.

"Since the beginning of the COVID-19 crisis, foreign and domestic fraudsters have been exploiting unprecedented demand on the nation's unemployment compensation systems that exist to protect hardworking Americans and their families during times of hardship," said L&I Secretary Jennifer Berrier. "Fraud-detection measures have revealed an increased level of sophistication in the most recent attacks on our system. Today, I am reaffirming our commitment to protecting Pennsylvanians' personal data, thwarting attempts to steal public money and working with law-enforcement agencies at every level to deter, catch and prosecute these bad actors."

Berrier added, "L&I takes seriously its responsibility to safeguard taxpayer dollars and individuals' personal data. We will continue these efforts aggressively and transparently."

In the early months of the pandemic, fraudsters initially targeted the Pandemic Unemployment Assistance program, a special program created by the federal government to provide unemployment benefits to individuals who lost their job due to the COVID-19 pandemic and are not typically eligible for UC. In most of these fraud attempts, fraudsters used stolen identities — obtained from data breaches outside state government — to submit illegitimate claims.

In more recent months, fraudsters have increasingly targeted traditional UC.

Pennsylvania's system for filing UC claims uses numerous fraud-detection measures, including virtual identity verification vendor ID.me to verify the identities of all new unemployment applicants. Multi-factor authentication, a two-step process that will add an extra layer of protection, will be added for claimants.

Since a new UC benefits system went live in June, the department has prevented more than $4.7 billion in state and federal dollars from being paid out to fraudsters.

Additionally, 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.

L&I encourages individuals to remain vigilant about guarding their personal and confidential information and to monitor for signs that their information is being used fraudulently.

Signs of fraud include:

— Individuals receiving unrequested unemployment paperwork from L&I's Office of Unemployment Compensation.

— Individuals receiving unemployment benefit payments they did not apply for from the Pennsylvania Treasury.

— Employers receiving notice that a claim has been opened for a current employee who is actively working, or an unknown person.

Report fraud online

Individuals can report suspected unemployment fraud by visiting the UC Benefits Website and clicking "Report Fraud" at the bottom of the page to complete and submit the Identity Theft Form. Do not log in.

Employers should indicate the claim is fraudulent in their response to the Notice of Claim Filed.

To report identity theft fraud related to the federal Pandemic Unemployment Assistance (PUA) program, please click here.

To report fraud by phone, call the PA Fraud Hotline at 1-800-692-7469.

L&I recommends that individuals who suspect they are the victims of identity theft to file a police report with local law enforcement and provide a copy of the police report to the Office of Unemployment Compensation.

The U.S. Department of Labor recommends that victims of identity theft should also report their information to the National Center for Disaster Fraud. Victims should also consider starting a recovery plan with the Federal Trade Commission.

DCED 2021 Year-in-Review:

Investments create good paying jobs

Department of Community and Economic Development (DCED) Secretary Dennis Davin this week highlighted some of the department's significant investments in 2021 and how that support is creating good paying jobs and strengthening communities for years to come.

"The Wolf administration recognizes that successful businesses depend on vibrant communities, and vice versa," said Sec. Davin. "DCED provides financial resource offers to growing businesses that already call Pennsylvania home and those looking to locate here. These strategic investments help companies thrive, create good paying jobs for our workers, and boost the local economy. We also fund a multitude of local projects across the commonwealth that ultimately make communities stronger, safer, and more attractive for residents and businesses alike."

Pandemic relief

The Wolf administration secured $145 million to launch the COVID-19 Hospitality Industry Recovery Program (CHIRP) which successfully provided pandemic relief grants to nearly 6,000 restaurants and hospitality industry businesses in all 67 counties. Helping the businesses and their employees who made sacrifices for their communities during the pandemic was a major priority for the administration. DCED provided the assistance through trusted local partners that understood the needs in their communities.

The Vaccine Outreach Grant Program is a new program created in 2021 to help grassroots organizations across the commonwealth encourage hesitant Pennsylvanians to get the COVID-19 vaccine.

There have been 65 grants, totaling $2.5 million, awarded so far through the Vaccine Outreach Grant Program.

Good paying jobs

Pennsylvania is an economic powerhouse with a robust and diverse economy that rivals the size of many countries. The commonwealth has the right environment to empower companies and help them grow.

One of DCED's top priorities is to support job creation through its economic development and business expansion programs. The Governor's Action Team is an experienced group of economic development professionals who report directly to the governor and work with businesses that are considering locating or expanding in Pennsylvania.

In 2021, the Governor's Action Team worked to protect 25,000 Pennsylvania jobs by helping to create 7,000 jobs and retain 18,000 jobs through offers of $49 million in state assistance to 48 businesses that are investing $2 billion into projects, like Chewy Inc. investing $25 million, creating 550 new jobs in Luzerne County.

Stronger, safer communities

From urban cityscapes to countryside communities and everything in between, Pennsylvanians can find the perfect place to live, work, and play. The commonwealth's cost of living is extremely competitive with surrounding states, our real estate is affordable, and our healthcare system offers some of the best hospitals in the nation.

DCED supports good stewardship and sustainable development initiatives, and provides strategic technical assistance, training, and financial resources to help make communities across the commonwealth stronger and safer.

In 2021, 220 statewide Neighborhood Assistance Program projects were approved, totaling $36 million.

Gov. Wolf announced the most recent round of funding awards for 34 statewide projects on December 20.

Cartwright hosts event on restoring

passenger rail service to NEPA

U.S. Rep. Matt Cartwright, D-Moosic, this week hosted an event with local elected officials, transportation officials, business leaders and Amtrak and Federal Railroad Administration (FRA) representatives to discuss how to take full advantage of the historic opportunities provided by the bipartisan Infrastructure Investment and Jobs Act and restore passenger rail service from Scranton to New York City.

"Since I got to Congress, I have been leading the charge to bring passenger rail service back to Northeastern Pennsylvania," Cartwright said. "We know that putting our area back on the rail map will grow businesses, create jobs and boost tourism, bringing in billions of dollars in economic development. I'm proud to stand with local, state and federal officials to make sure our region takes full advantage of the historic federal investment in passenger rail expansion."

The bipartisan Infrastructure Investment and Jobs Act provides $66 billion for rail investment, including funds for Amtrak and the FRA to improve existing lines and expand service to new areas. Amtrak's 2021 expansion plan included three round trips between Scranton, PA and New York City.

The historic investment in rail was applauded by local business and community leaders, including Chris Barrett, President and CEO of the Pocono Mountains Visitors Bureau.

"From small mom and pop shops to our large resorts, the return of the Amtrak passenger rail service will be a game changer for our local economy and the more than 30-million guests who visit the Pocono Mountains every year," said Barrett. "In addition, our residents will benefit from an enchanted quality of life with easy access to and from New York City."

Reach Bill O'Boyle at 570-991-6118 or on Twitter @TLBillOBoyle.