Assemblymember Chávez Introduces Bill to Reduce Fraud
Assemblymember Rocky Chávez (R-Oceanside) introduced Assembly Bill 1631. The measure will require the Employment Development Department (EDD) to investigate cases in which a single social security number is associated with multiple names. In cases where the number is being used by multiple names, EDD will send the information to the Department of Justice for further investigation.
In October 2013, the State Auditor’s Office discovered more than 1,400 instances where a single Social Security number was associated with 10 or more different names. One number was used 162 times within a single quarter, resulting in $600,000 paid out in three months.
AB 1631 will help cut down on identity theft and fraud by requiring EDD to investigate when it sees multiple names associated with a single social security number.
“Californians have been severely impacted by the recession, and so has the State’s Unemployment Insurance account, which is currently running a $10 billion deficit,” Chávez said. “Our state should ensure that funds paid for by taxpayers and employers are spent wisely and not subject to fraud and abuse.”