CA Unemployment Fraud: Bank Of America Flags $2 Billion In Potential Unemployment Fraud Spanning 640,000 Accounts
(From The LA times)
Bank of America estimated Monday that fraud in California’s unemployment benefits system could total $2 billion, and said it has identified 640,000 accounts with suspicious activity that should be investigated to determine whether they are bogus and should be shut down.
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 state legislators. It represents the highest estimate of fraud yet in a system that has paid $110 billion since the COVID-19 pandemic triggered a wave of joblessness in California beginning in March.
(From Zerohedge)
The assessment was conducted after the BofA CEO Brian Moynihan received a letter from 59 state legislators seeking answers on the question of fraud in the system run by the EDD following the freezing of 350,000 debit cards over suspicious activity. Apparently flood of legitimate customers who had their accounts frozen swamped lawmakers, who in turn wrote to Moynihan on Nov. 24.
News of the suspicious accounts comes just days after California officials admitted that $400 million in unemployment benefits were improperly paid to people who filed under the names of prison imates.
This article was originally posted here: https://www.ac2news.com/2020/12/ca-unemployment-fraud-bank-of-america-flags-2-billion-in-potential-unemployment-fraud-spanning-640000-accounts/.
