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California: Criminal rings loot billions in jobless funds

California officials say hackers, identity thieves and overseas criminal rings stole an estimated $11.4 billion in unemployment benefits from California last year

Via AP news wire
Monday 25 January 2021 19:39 EST
California Unemployment Fraud
California Unemployment Fraud (Copyright 2020 The Associated Press. All rights reserve)

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California officials say hackers, identity thieves and overseas criminal rings stole an estimated $11.4 billion in unemployment benefits last year.

But the extent of the fraud might grow far larger: billions more in jobless payments are under investigation.

California Labor Secretary Julie Su told reporters in a conference call Monday that of the $114 billion the state has paid in unemployment claims during that time, about 10% has been confirmed as fraudulent.

Nearly $20 billion more is considered suspicious, and a large part could be confirmed as fraud.

Su says the state did not have sufficient security measures in place and criminals took advantage of the gaps.

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