EDD fraud vs SBA PPP loan identity theft - fighting $20K loan I never applied for

While EDD and SBA are different agencies, I've seen similar identity theft issues with both during the pandemic. First, make sure your mother has: 1) Filed an identity theft report at IdentityTheft.gov, 2) Placed a fraud alert with all three credit bureaus, 3) Submitted a complaint to the SBA Inspector General at www.sba.gov/oig, and 4) Contacted her congressional representative's office. Congressional caseworkers can often cut through red tape when dealing with federal agencies. Also, get EVERYTHING in writing. Send all correspondence via certified mail with return receipt. Keep detailed records of every call including date, time, and who you spoke with. The SBA statement about 'millions claiming fraud' is a terrible response, but unfortunately common when agencies were overwhelmed with pandemic fraud.

omg this happened to my neighbor!!! she was like 82 and someone took out PPP AND an EDD claim in her name! took her like 8 months to get it sorted and she had to get a lawyer. so messed up that they make the victims jump through all these hoops. ur poor mom

I had my identity stolen for EDD fraud (not SBA), and what finally worked was contacting my state senator's office. Their constituent services team contacted EDD directly and got everything resolved within 3 weeks after I had been struggling for months on my own. For federal agencies like SBA, you'd want to contact your congressional representative or senator. Also, there's a specific department at the SBA that handles PPP fraud: contact the SBA's Office of Inspector General Hotline at 800-767-0385. They're more responsive than the general SBA customer service. Document EVERYTHING and be persistent.

I work for a non-profit that helps seniors with financial issues, and we've seen DOZENS of these cases. The SBA is completely overwhelmed with fraud cases. Here's what works: 1) File a formal complaint with the CFPB (Consumer Financial Protection Bureau) at consumerfinance.gov - they take elder financial abuse seriously 2) Contact the Senate Special Committee on Aging fraud hotline: 1-855-303-9470 3) If your mom is a veteran, also contact the VA as they have additional resources. The key is hitting them from multiple angles simultaneously. And don't give up! These cases DO get resolved eventually, but it takes tremendous persistence.

have u tried reaching sba directly??? sometime u gotta just keep calling till u get someone helpful. took me 14 DAYS of calling edd to fix my identity issue last year!!! so frustating!!!

I had a similar nightmare scenario with EDD (not SBA) last year - someone filed claims in my name while I was actually employed! I spent MONTHS trying to get through to EDD on the phone without success. After literally hundreds of calls, I finally tried Claimyr.com to connect with an EDD representative. Their service bypasses the phone tree and actually got me through to a real person who could help. They have a video demo here: https://youtu.be/JmuwXR7HA10?si=TSwYbu_GOwYzt9km. For SBA issues, I'd definitely try the congressional representative route that others mentioned - that's what ultimately resolved my tax issues from the false EDD claim.

This is OUTRAGEOUS but unfortunately common!!! The government created these rushed programs with ZERO safeguards and NOW honest people are suffering!!! My cousin's small business had its EIN stolen and used for a fraudulent PPP loan. The SBA basically told him "tough luck" until he got his CONGRESSMAN involved. That's the ONLY thing that worked. These agencies are SWAMPED with fraud cases but that's THEIR problem not yours!! Don't give up and don't pay a PENNY of that fraudulent loan!!!!

Since several people have mentioned it, I want to emphasize how effective congressional casework can be. Federal agencies like SBA have dedicated staff whose only job is to respond to congressional inquiries. Call your representative's local district office (not DC office) and ask to speak with a caseworker about an SBA issue. They'll have you fill out a privacy release form, then they'll contact SBA directly. Also, specifically request an 'identity theft investigation' not just a generic fraud report. This triggers different protocols at SBA and gets assigned to specialized staff.

my dad had similar problem with unemployment not ppp. some1 filed claim using his info but he was retired for years!!! took forever to fix. edd kept sending him papers saying he owed money back + penalties. super stressful!! he finally got help from legal aid society in our county. they have lawyers who help seniors for free with stuff like this. maybe check if your area has something similar?

Just checking back - have you had any success with the resources suggested here? One additional recommendation: If your mother banks with a credit union or local bank, their fraud department might be willing to help advocate on her behalf, especially if she's been a long-term customer. Also, the America's SBDCs (Small Business Development Centers) sometimes help with PPP fraud cases even for non-business owners. They understand SBA systems and may have contacts who can expedite the case. You can find your local office at americassbdc.org.

I'm so sorry your family is going through this nightmare. Identity theft targeting seniors is absolutely heartbreaking, and the fact that government agencies are making victims feel like criminals is unacceptable. One thing that hasn't been mentioned yet - consider reaching out to your state's Attorney General's office. Many AGs have elder fraud units that specifically handle these types of cases and can put pressure on federal agencies. Also, if your mom receives any more threatening collection letters, respond in writing (certified mail) stating that this is a case of identity theft under investigation and that you dispute the entire debt. Under the Fair Debt Collection Practices Act, they must stop collection efforts once you dispute it in writing. Document everything with photos/scans. The fact that she's been retired for 9 years and never owned a business should make this a slam-dunk case once you get the right people involved. Stay strong - you're doing everything right by advocating for her!