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California dropped its guard before it was hit with $2 billion in unemployment fraud

California dropped its guard before it was hit with $2 billion in unemployment fraud
Patrick McGreevy
© (Associated Press)
Well before the pandemic, California failed to take steps to head off fraud in the state s unemployment benefit system, which some estimate is $2 billion and rising. (Associated Press)
As California grapples with staggering levels of unemployment benefit fraud $2 billion or more by one estimate lawmakers and security experts say the state let its guard down well before the COVID-19 pandemic began in March, failing to keep up with what other states have done to flag bogus claims.
Now, faced with what officials describe as the largest fraud scheme against taxpayers in state history, the state Employment Development Department is scrambling to fix past mistakes as prosecutors, government auditors and legislators say their early warnings about vulnerabilities in the unemployment benefit system went unheeded. ....

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EDD didn't guard against unemployment fraud, legislators say - The San Diego Union-Tribune

SACRAMENTO
As California grapples with staggering levels of unemployment benefit fraud $2 billion or more by one estimate lawmakers and security experts say the state let its guard down well before the COVID-19 pandemic began in March, failing to keep up with what other states have done to flag bogus claims.
Now, faced with what officials describe as the largest fraud scheme against taxpayers in state history, the state Employment Development Department is scrambling to fix past mistakes as prosecutors, government auditors and legislators say their early warnings about vulnerabilities in the unemployment benefit system went unheeded.
Many of the phony claims were preventable, they say, if California had taken precautions implemented in other states, including using sophisticated software to identify suspect applications, keeping Social Security numbers out of official mail and cross-checking benefit claims against personal data on state prison inmates. Cross ....

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