Report 2020-628.2 Recommendation 3 Responses

Report 2020-628.2: Employment Development Department: Significant Weaknesses in EDD's Approach to Fraud Prevention Have Led to Billions of Dollars in Improper Benefit Payments (Release Date: January 2021)

Recommendation #3 To: Employment Development Department

To ensure that it provides appropriate assistance to victims of identity theft who report fraud through its online fraud reporting portal, EDD should, by March 2021, establish a working group to coordinate the work needed to resolve each complaint of identity theft, make decisions about staffing levels necessary, and add staffing to accomplish the work.

The EDD Fraud Enterprise Workgroup developed a recommendation paper to address the EDD's analysis and corresponding measures taken to prepare to respond to victims of identity theft. As part of the Fraud Workgroup, a subcommittee was established to examine and initiate actions necessary to protect victims of identity theft and, to prepare the EDD for an expected influx of IRS Form 1099-G triggered contacts from claimants and/or victims.

California State Auditor's Assessment of Status: Fully Implemented

EDD established a working group, identified the workload related to responding to complaints of identity theft, and identified several actions necessary to increase staffing levels and reduce the possible workload. Now EDD must ensure that its workgroup remains appraised of the work necessary to assist victims of identity theft and respond appropriately. Doing so will be essential to maintaining full implementation of our recommendation.

All Recommendations in 2020-628.2

Agency responses received are posted verbatim.