SACRAMENTO, CA – California gubernatorial candidate Steve Hilton wrote to Homeland Security Secretary Kristi Noem this week urging a full federal investigation into visa and benefits fraud, and wider immigration abuse, tied to California.
The request follows Secretary Noem’s disclosure that half of the State of Minnesota’s visa applications were fraudulent.
Hilton called California “a magnet for exploitation, lawlessness and fraud” after years of one party rule that removed accountability, expanded eligibility for welfare benefits, and ignored abuse inside state government. “Working families who do the right thing are punished, while those who break the rules are rewarded. Meanwhile Sacramento politicians just siphon off more and more money from taxpayers to expand their bloated, corrupt bureaucratic empires.”
To support his effort to save taxpayers’ money by stopping fraud, bloat and abuse, Hilton is launching a new anonymous whistleblower website, califraud.com, for current and former state workers to report fraud, waste, and abuse occurring inside California’s government. The platform allows civil servants to submit information without fear of retaliation by the Democrat machine. “There are thousands of state workers who see what is happening every day. They want accountability, but their political masters want silence. Califraud.com gives them a voice,” Hilton said.
The Steve Hilton for Governor campaign will take out ads in publications read by state workers to inform them about Califraud.com.
Hilton vowed that as governor, he will end the culture of corruption, enforce the law, audit every major program, and restore the basic expectation that those who come to America must follow our rules and contribute to our success.
For more information about Steve Hilton’s campaign and vision for California, visit www.stevehiltonforgovernor.com.
Fraud involving California’s state benefit programs is a major and persistent problem, affecting multiple systems such as Electronic Benefit Transfer (EBT) cards for CalFresh and CalWORKs, and unemployment insurance (EDD). Here’s a breakdown of the scope and trends:
1. Welfare & EBT Fraud (CalFresh, CalWORKs)
- Since 2021, California has lost over $439 million to EBT theft, with losses now exceeding $10–14 million per month. These funds are stolen from accounts meant for low-income families, often through card skimming and cloning at ATMs and retailers. [kget.com]
- California ranks second in the nation for SNAP (food stamp) fraud, with 86,000 claims of stolen benefits totaling $38 million between 2023 and early 2025. [newsweek.com]
- Organized crime rings—including international groups—are heavily involved. For example, Romanian gangs were linked to $181 million in welfare fraud in Southern California, prompting federal prosecutions. [sandiegopost.com]
- Enforcement is weak: arrests and prosecutions are rare, and counties often reimburse claims with “no questions asked”, creating incentives for false reimbursement requests. [californiaglobe.com]
2. Unemployment Insurance (EDD) Fraud
- During the pandemic, California’s EDD paid out as much as $31 billion in fraudulent unemployment claims—about 27% of all benefits paid in that period. [abc7news.com]
- Fraud schemes included identity theft, fake businesses, and inmate conspiracies. Recent cases show the problem persists:
- A former EDD employee was sentenced for filing $858,000 in fraudulent claims and taking bribes. [justice.gov]
- Inmates and outside accomplices stole $533,000 in benefits in one case. [sacda.org]
- A family fraud ring stole $1.1 million by creating fake companies and employees. [cslea.com]
- EDD reports 2,264 investigations, 929 arrests, and 611 convictions since 2020, and claims to have recovered $5.9 billion, but the scale of losses dwarfs recoveries. [edd.ca.gov]
3. Why Is Fraud So Bad?
- Outdated technology: EBT cards still use magnetic strips, making them easy targets for skimming devices.
- Rapid rollout of pandemic programs with minimal identity checks created vulnerabilities.
- Limited enforcement resources: Some counties have few or no welfare fraud investigators.
- Organized crime involvement: Sophisticated rings exploit systemic weaknesses.
4. Current Countermeasures
- California is rolling out chip-enabled EBT cards and using ID.me identity verification for unemployment claims.
- AI-driven fraud detection and cross-checking with prison and federal databases are being implemented.
- Law enforcement task forces have made arrests, but recovery rates remain low compared to losses.