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Fraud concerns over California's unemployment benefits

Numerous reports have emerged of people receiving unsolicited letters, some containing debit cards, from the agency in their mailboxes.

Posted: Sep 3, 2020 7:36 PM
Updated: Sep 4, 2020 10:56 PM

SACRAMENTO, Calif. (AP) - Concerns are growing about possible fraud at California’s unemployment agency.

Numerous reports have emerged of people receiving unsolicited letters, some containing debit cards, from the agency in their mailboxes.

Last week, California had processed more than 405,000 pandemic unemployment assistance claims, accounting for more than half of all claims filed in the country.

Former Employment Development Director Michael Bernick said the number signals the potential for fraud.

The agency says it is developing methods to stop and prevent fraudulent claims from being paid.

Meanwhile, the Joint Legislative Audit Committee approved an emergency audit of the state’s unemployment agency, including an analysis of claims that are approved, denied, pending and backlogged.

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