I live in WA state and receive unemployment. I recently had to verify my identity after getting unemployment for 6 months. This required that I send them a color copy of my DL & SS card, and a passport too since I had one. It was announced shortly thereafter that the system they use to process documents was compromised. A virtual passport app may present real data risk, but no more than the government already does in the multitude of breaches that take place every year with no end in sight.