California suspends payment on 1.4 million unemployment claims while searching for fraud [Los Angeles Times :: BC-UNEMPLOYMENT-CALIF:LA]
Ten months into a COVID-19 pandemic that put many out of work, the state unemployment agency has suspended payments on 1.4 million benefit claims, angering jobless Californians as it attempts to rein in rampant fraud.
The mass suspension is the latest controversy for an agency that has come under fire for jammed phone lines, computer glitches and operational problems that have left hundreds of thousands of frustrated Californians without financial help, many for months.
State lawmakers say their offices have been flooded with desperate calls from constituents who don’t understand why their jobless benefits have been cut off by the state Employment Development Department.
California suspends payment on 1.4 million unemployment claims while searching for fraud [Los Angeles Times]
Ten months into a COVID-19 pandemic that put many out of work, the state unemployment agency has suspended payments on 1.4 million benefit claims, angering jobless Californians as it attempts to rein in rampant fraud.
The mass suspension is the latest controversy for an agency that has come under fire for jammed phone lines, computer glitches and operational problems that have left hundreds of thousands of frustrated Californians without financial help, many for months.
State lawmakers say their offices have been flooded with desperate calls from constituents who don’t understand why their jobless benefits have been cut off by the state Employment Development Department.
FAIRFIELD-SUISUN, CALIFORNIA
In this file photo, Estella Flores, right, and Maria Mora, left, are reflected in a window as they look for information in front of the closed California State Employment Development Department on Thursday, May 14, 2020 in Canoga Park, Calif. (Brian van der Brug/Los Angeles Times/TNS)
California suspends payment on 1.4 million unemployment claims while searching for fraud
Ten months into a Covid-19 pandemic that put many out of work, the state unemployment agency has suspended payments on 1.4 million benefit claims, angering jobless Californians as it attempts to rein in rampant fraud.
The mass suspension is the latest controversy for an agency that has come under fire for jammed phone lines, computer glitches and operational problems that have left hundreds of thousands of frustrated Californians without financial help, many for months.
California’s EDD freezes many people’s unemployment benefits to combat fraud By Carolyn Said and Kathleen Pender
California’s Employment Development Department has suspended unemployment payments for numerous people because of fear of fraud. Many Californians who said they are legitimately unemployed flooded social media over the weekend with laments that they desperately need the benefits that they rely on for housing, food and other necessities.
“You have been receiving unemployment benefits, but we have temporarily suspended your claim because it may be tied to fraudulent activity,” said a notice dated Dec. 31 that many people received. “You will receive further instruction from EDD on how to verify your identity beginning Jan. 6, 2021.”
The bank, which has contracted with the state Employment Development Department to issue debit cards containing unemployment benefits, issued the warning in a letter to California legislators.
The EDD also has not acted swiftly enough on warnings from March 2019 that it was exposing claimants’ Social Security numbers to fraud by sending them in the mail, according to the state auditor, who said Washington and Texas are among states that do not include full numbers in mail.
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In addition, legislators are questioning why the EDD canceled a contract five years ago with a firm that was using sophisticated software to help ferret out bogus claims. The firm is being used in dozens of federal and state agencies, including in Nevada and Wisconsin.