Now it's happening again -- this time with EDD's disability payments. Scammers using stolen identities to file phony disability claims.
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The EDD has now frozen 345,000 disability claims hoping to stop the latest fraud. It suspects most are phony -- but the EDD admits some are legitimate claims for benefits to the sick and disabled.
Many are now saying they were cut off without notice.
"It's absolutely ridiculous anyone has to go this long with no pay and no answers. That's the frustrating part," said Baily Graham, a disability claimant.
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"It's déj vu all over again," said State Assemblyman Jim Paterson (R - Fresno). "The EDD is once again treating legitimate claimants this time with disability claims as if they might be scammers."
7 On Your Side has learned the problem began with a medical database breach -- scammers stole identities of hundreds of doctors, then used their credentials to authorize fake disability claims. The EDD blocked 27,000 physician accounts it believes are the imposters.
It will now require real doctors to verify their identities before they can authorize disability payments. The EDD hasn't said how much money it has paid to the scammers.
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