Before the pandemic, less than $10 million per year in unused benefits returned to the state. But Tuesday, the governor's office announced it was $1.1 billion from 2020, a sign of the size and scale of fraud that targeted the nation's most populous state.
SACRAMENTO, Calif. — About $1.1 billion in unused unemployment benefits returned to California on Tuesday, money state officials said was most likely attempted fraud during the pandemic.
State officials could not say all of the reasons why fraudsters would not use those debit cards. In some cases, people who had not applied for unemployment benefits had received debit cards in the mail — a sign that someone had stolen their identity and used it to apply for assistance. Some of those people then returned those debit cards without using them.
The California Employment Development Department was quickly overwhelmed by all of the applications. Facing intense public pressure, state and federal officials relaxed some rules to get the money out faster and to make more people eligible for assistance.
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