At least 10% of unemployment claims may have been fraudulent before controls were installed in October, according to Blake Hall, founder and chief executive of the company ID.me., which has been hired by the state Employment Development Department to weed out fraud. A 10% fraud rate could total $9.8 billion of the benefits paid from March through September.
Much of the fraud in California and other states is coming from organized criminal gangs operating in some 20 foreign countries, including Russia, China, Nigeria, Ghana, Turkey and Bulgaria, Hall said.
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