California EDD freezes 345,000 disability insurance claims

California's Employment Development Department has frozen 345,000 claims for disability benefits while it investigates fraud and a widespread identity theft scam. The EDD's suspicions were piqued by a sudden surge in applications for benefits.

California’s unemployment fraud reaches at least $20 billion

State officials blamed nearly all of that fraud on a hastily approved expansion of unemployment benefits by Congress that let people who were self-employed get weekly checks from the government with few safeguards to stop people from getting benefits who were not eligible to receive them.