Senator Hurtado Calls for Review of State Contract with Identity Verification Firm Socure amid Ongoing EDD Fraud and Financial Losses

SACRAMENTO, CA — Senator Melissa Hurtado (D-Bakersfield) has called on the California Department of General Services (DGS) to immediately review the state’s contract with Socure, a data broker hired by the Employment Development Department (EDD) to verify the identities of Californians applying for unemployment and disability benefits.

In a letter to DGS Procurement Division Deputy Director Angela Shell, Senator Hurtado raised serious concerns about the company’s performance, citing a pending lawsuit alleging that Socure failed to block more than 70% of known fraud attempts—far below its claimed 95% success rate.

“This is unacceptable in a state that has already lost billions to fraud,” said Senator Hurtado. “California taxpayers are still on the hook for more than $20 billion in federal loans taken out to cover pandemic unemployment benefits. We’re paying $1 billion a year in interest alone and the system is projected to lose another $2 billion annually. We cannot afford to keep paying for failure.”

Senator Hurtado also criticized Socure’s use of opaque artificial intelligence systems to collect and analyze sensitive personal data—often without clear consent—and highlighted the lack of transparency and due process available to Californians who are misidentified or denied benefits.

Senator Hurtado’s letter urges DGS to review Socure’s contract, performance metrics, data practices, and compliance with state requirements.

“These contracted companies are given powerful tools and access to private information, but little accountability. We need to stop blindly trusting black-box algorithms and start demanding real results. The stakes are too high—this is about people’s livelihoods, their privacy, and their trust in government,” Hurtado concluded.

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