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01.29.2021 Two audits tell the tale: How California failed to detect unemployment fraud

Excerpted from CalMatters

By Emily Hoeven

Despite repeated warnings from federal authorities that fraudsters would target California, EDD waited six months and processed 7.4 million claims before it began flagging addresses with unusually high numbers of claims, the audit found. In “the most egregious example,” more than 1,700 claims came from a single address. EDD also paid $10.4 billion to claimants with unverified identities and $810 million to prison inmates. State labor officials confirmed this week the total fraud could reach $31 billion.