Too soon to assess L&I’s new fraud security system
State Labor & Industry officials don’t have a sufficient sample size to determine the impact a new computer system is having on identifying unemployment compensation fraud.
“Once we have more results, we’ll have a better idea how many claims are legitimate,” Susan Dickinson, unemployment compensation benefits policy director, said Tuesday during L&I’s weekly virtual news conference.
She was referring to the ID.me system, implemented in Pennsylvania less than two weeks ago to ferret out UC fraud. ID.me is additional security measure the state has employed to verify the identities of applicants for funds from the Pandemic Unemployment Assistance program, and was the primary focus of the media gathering.
PUA fraud became a national issue in the spring, when claims were made using stolen identities. A surge in fraudulent claims followed in Pennsylvania, and other states, in mid-September. Those benefits are intended for self-employed, independent contractors, gig workers and others not eligible for regular UC.
Only new applicants must verify their identities through the new system – existing claimants do not. New applicants will be instructed through a communication from ID.me.
Labor & Industry is withholding payments on new PUA claims until identities are proven to be valid. “If identities are cleared, you should get payments quickly,” Dickinson said. But, she added, “a claimant will not necessarily receive pay if there is another question. Identification may not be the only issue.”
L&I secretary Jerry Oleksiak said the federal PUA program is scheduled to end Dec. 31. Asked whether it may be extended, he said: “I wouldn’t know what to expect from Congress. There is a big event coming up for Congress (i.e., the general election). There are too many things going on to determine the answer.”
Oleksiak reminded residents they still can apply for funds through the Lost Wages Assistance program, a $300 weekly benefit for those who are or were fully or partly unemployed because of the pandemic. The retroactive payments cover a six-week period, beginning Aug. 1 and ending the week of Sept. 5, when LWA lapsed.
Labor & Industry reported that it has paid $29.5 billion in total benefits, including $5.6 billion in regular UC.
L&I will have its 21st weekly town hall at 1 p.m. Thursday. It is open to the public, by calling 833-380-0719 or live-streaming at https://access.live/PAlabor.