California EDD suspends 'high risk' claims to overcome fraud, leaving thousands without net

Where are my unemployment benefits?

That's the question that a lot of out-of-work Californians are asking after the state's Employment Development Department suspended checks to thousands of claimants in an effort to root out rampant fraud.

It's estimated that hundreds of thousands of people on unemployment had those checks suspended on December 31. Daniela Urban, Executive Director of the Center for Workers Rights, told KCBS Radio it's a huge blow to folks who have lost their jobs during the coronavirus pandemic.

"They’ve already drawn down their savings and are living on these benefits check to check," she said. "So any delay in payment results in their inability to meet basic needs."

The Employment Development Department suspended claims that may be tied to fraudulent activity, a scheme that may ultimately add up to an estimated $2 billion.

Michael Bernick, an attorney with the law firm Duane Morris and former EDD Director, said the agency has always had trade-offs between delivering benefits and combating fraud.

"If EDD did nothing, they’d be attacked for not addressing this big issue of fraud," Bernick added. "On the other hand, people are desperate."

Starting Wednesday, people whose checks have been suspended will need to reverify their identities. The EDD told KCBS Radio it is working around the clock to ensure valid claimants have access to the benefits they're earned while also protecting the integrity of the program.

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