"It's Outrageous": Bank Of America Flags $2 Billion In Potential Unemployment Fraud Spanning 640,000 Accounts by Tyler Durden Tue, 12/08/2020 - 13:12 TwitterFacebookRedditEmailPrint In Septemb…

"It's Outrageous": Bank Of America Flags $2 Billion In Potential Un...


Profile picture for user Tyler Durden


In September, we noted how California saw a staggering 72% decline in Pandemic Unemployment Assistance (PUA) applications after the state started cracking down on suspected scammers.

Yet despite the state's efforts, Bank of America on Monday estimated that fraud in California's unemployment benefits system could total $2 billion across 640,000 accounts which have exhibited suspicious activity, and which should be investigated according to the LA Times - which adds that this is "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."

Red flags include claims filed in the names of infants, children and centenarians - along with people living in other states, according to a bank official.

Stock Pickers Miss Out on Record Gains

Fraudsters typically apply for unemployment debit cards under false pretenses, then immediately withdraw the funds via ATMs as soon as they hit the accounts, officials told Patch.com in September.

"Due to the pandemic, we have seen a dramatic increase in unemployment fraud through EDD," the Torrance Police Department told Patch, adding that they saw an increase in EDD debit-card scams in September.

"It is outrageous," said Jon Coupal, president of the Howard Jarvis Taxpayers Association. "We understand that there was an effort to push as much money into the economy as possible but there has got to be some controls. Here it is like they have opened up a bag of cash in the middle of a tornado and hoped that it ends up someplace where it is supposed to be."

BofA arrived at their estimates after working with the state Employment Development Department (EDD) to institute various fraud prevention measures designed to detect fraud, according to the bank's director of California government relations, Brian Putler.

"As a result of these efforts, we have identified more than 640,000 accounts for EDD to evaluate as to whether they are fraudulent and the associated card should be frozen or account closed," he said, adding "Our assessment is that there is activity consistent with fraud in those accounts on the order of approximately $2 billion."

Putler noted in a letter to lawmakers that while other states experience unemployment fraud, "The scale of program fraud in California is unique."



The accounts identified as suspicious include 76,000 benefits cards sent to people in states that do not border California, which are deemed more likely to involve fraud than adjacent states that might temporarily host out-of-work Californians.

The bank said there were also “numerous cases” in which multiple cards, including hundreds in some instances, have been sent to a single mailing address.

Other issues identified include multiple cards using a common contact phone number or address, and benefits issued to infants or children as well as centenarians or other elderly people not likely to be working, Putler wrote.

He said the scope of potential fraud is coming into better focus from an examination of 345,000 debit cards already frozen because of suspicious activity. -LA Times

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.

A group of nine district attorneys warned Gov. Gavin Newsom last week that they have received unverified information that some $1 billion in benefits has been paid on claims filed by people outside the state, including claimants outside the country.

Putler warned lawmakers on Monday that the fraud problem has implications far beyond the loss of taxpayer funds.

He cited conclusions by third-party security experts in the U.S. that organized crime rings may be using unemployment funds to support other criminal enterprises, including illicit arms purchases and terrorist activities. -LA Times

Bank of America, meanwhile, has beefed up its staff to handle EDD claims, and has proposed that a dedicated call center be funded to help authenticate blocked and frozen accounts belonging to legitimate claimants.

"We share with you and with EDD the objective of ensuring that legitimate claimants get the benefits they deserve while mitigating the impact of the unprecedented fraud being experienced," wrote Putler.

Responding to the bank's letter, Assemblyman Jim Patterson (R-Fresno) sympathized with unemployed Californians with frozen accounts, writing: "Identifying fraud must be a priority, but Californians with no income cannot be sacrificed on the altar of incompetence."

Views: 10

Comment

You need to be a member of 12160 Social Network to add comments!

Join 12160 Social Network

"Destroying the New World Order"

TOP CONTENT THIS WEEK

THANK YOU FOR SUPPORTING THE SITE!

mobile page

12160.info/m

12160 Administrators

 

Latest Activity

Doc Vega posted blog posts
7 minutes ago
Burbia commented on tjdavis's video
Thumbnail

Charlie Kirk: Grief And Outrage From Turning Point USA in Phoenix

"Early reports said a.second shooter was there. Talk of Dischord chats. Peyton Gendron was coerced…"
9 hours ago
tjdavis posted a video

America In Crisis: Illegals and Drug Smugglers Have Us Beat

An inside look at how bad the situation is at the Arizona/Mexico border. This exclusive tour with retired Arizona Sheriff Mark Lamb reveals just how bad thin...
14 hours ago
Burbia posted a video

Sam Hyde Show: This is You

support the show: https://www.mde.tv/▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬🔥 BUY EXTREME PEACE on MDE.TV 🔥https://www.mde.tv/series/extreme-peace▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬...
14 hours ago
Burbia commented on Sandy's photo
16 hours ago
Burbia commented on Sandy's photo
16 hours ago
Sandy posted a photo
yesterday
tjdavis posted a video

Charlie Kirk: Grief And Outrage From Turning Point USA in Phoenix

We went to Charlie Kirk's Turning Point USA headquarters in Phoenix to talk with people who were there to pay their respects.►Join my community to get exclus...
yesterday
Doc Vega posted blog posts
yesterday
Burbia commented on Doc Vega's blog post This Memorable Anthem Given by Nick Freitas Hit the Nail on the Head Please Listen!
Saturday
Doc Vega posted blog posts
Friday
Doc Vega commented on Doc Vega's blog post A Few More Rats in Your Skull Concerning Charlie and the Rampaging Left
"cheeki kea, Yes that was released on to book sites 19 hours before the tragic event and also there…"
Friday
Burbia commented on Sandy's video
Friday
Sandy posted a video

Charlie Kirk Was Terrified Of Israel

Enjoy the videos and music you love, upload original content, and share it all with friends, family, and the world on YouTube.
Friday
Sandy posted a photo
Friday
cheeki kea commented on Doc Vega's blog post A Few More Rats in Your Skull Concerning Charlie and the Rampaging Left
"The internet is fractioned that's for sure but it never sleeps and the big question of the day…"
Friday
Burbia commented on Doc Vega's blog post A Few More Rats in Your Skull Concerning Charlie and the Rampaging Left
"It seems America has many meanings to many people. The internet has fractioned everybody. I had…"
Thursday
Doc Vega commented on Doc Vega's blog post Plausible Explanation Behind Recent Cryptid Sightings in the Wild!
"Cheeki kea I'm glad that the giant Moa downsized to this turkey looking land walker.!"
Thursday
Burbia commented on Burbia's blog post Charlie Kirk Assaination
"I don't know what difference if any that he was also a member of Council for National Policy.…"
Thursday
Doc Vega commented on Burbia's blog post Charlie Kirk Assaination
"I remember when they found out that the united Council of Churches worldwide had been funding…"
Thursday

© 2025   Created by truth.   Powered by

Badges  |  Report an Issue  |  Terms of Service

content and site copyright 12160.info 2007-2019 - all rights reserved. unless otherwise noted