That would shit me off too. You can report people, apparently.

On the other hand a volunteer job often has less responsibility and pressure etc, which especially with mental health, might be the make or break. Or she might be able to go home whenever she wants, even if all her hours add up to 40, but a real job that would be 'unemployable'. Also Etsy ... sitting at home doing things online is a huge difference to doing things irl.

So hey... it could be perfectly ok, but it could also just be ... she's rorting the system. :-(