CA EDD admits paying as much as $31 billion in unemployment funds to criminals

TuesdayJanuary 262021

As much as $31B EDD funds paid to scammersofficials say

CA EDD admits that as much as $31 billion in unemployment funds were stolen from California taxpayers in 2020nearly four times more than previously estimated.

SAN FRANCISCO (KGO) -- As much as $31 billion in California unemployment funds have been paid out to scammersCalifornia EDD admits.

ABC7 News' 7 On Your Side has been tracking the numerous fraudulent claims that have been plaguing the EDD and on Monday afternoonit confirmed that even more money than previously reported has been paid out to scammers.

In an EDD conference callJulie Susecretary for the California Labor and Workforce Development Agency said"Of the 114 billion dollars in unemployment paid by California since Marchapproximately 10% has been confirmed as fraudulent. An additional 17% of the paid claims have been identified as potentially fraudulent."

That's $11.4 billion confirmed and as much as $20 billion more in fraud.

"There is no sugar coating the realityCalifornia did not have sufficient security measures in place to prevent this level of fraud," Su said.

EXCLUSIVE: Insiders say California EDD unemployment benefit scam was get-rich-quick scheme

It's a story you'll only see on ABC7 News: More local charges are likely to be filed in an inmate unemployment benefits scam sweeping the country.

The EDD says it is working to verify the identities of people who made claims and many remain under investigation.

A few weeks prior7 On Your Side found that more than $8 billion unemployment funds were stolen from California taxpayers in 2020four times higher than estimated in December.

Suis expected to be nominated for the US Labor Department by President Biden, Bloomberg reports.

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