EXCLUSIVE: Posh Beverly Hills stores are being plagued with 'customers' using stolen unemployment benefit debit cards - or wads of cash from ATMs using the cards - as police crack down and urge boutiques like Gucci and Louis Vuitton to vet shoppers
Luxury stores on Rodeo Drive are being plagued with customers buying designer items with stolen unemployment benefit debit cards, and police are encourage boutiques such as Gucci and Louis Vuitton to vet shoppers and provide proper identification, DailyMail.com has learned.
The coronavirus pandemic, that forced millions of Americans out of their jobs, prompted the Federal government to step in through the CARES Act to create enhanced unemployment benefits for out of work citizens.
Those benefits, including the four month $600 per week add on, have been targeted by thieves who have assumed other people's identities in order to get California State issued Employment Development Department (EDD) Bank of America debit cards.
Fliers recently distributed by the Beverly Hills Police Department to shops warn that people are using fraudulent debit cards to purchase designer goods.
Stores in the area told DailyMail.com they began noticing the rise of people paying with unemployment benefit cards months ago, and most will now insist customers show identification when using the EDD cards to help crack down on the unscrupulous.
Luxury stores on Rodeo Drive have complained about customers purchasing goods with unemployment benefit debit cards, as Beverly Hills Police has issued a warning about people using stolen cards to buy items, DailyMail.com has learned
Fliers recently distributed by the Beverly Hills Police Department to shops in the wealthy area warn that people are using these fraudulent debit cards to purchase designer goods
The benefits, including the four month $600 per week add on, have been targeted by thieves who have assumed other people's identities in order to get California State issued Employment Development Department (EDD) Bank of America debit cards (pictured)
According to police, the thieves either take the unemployment benefit cards to ATMs and clean out the balance or use the actual debit card in stores.
Sources at these stores say the customers using EDD cards are buying what they call 'entry level' designer goods, explaining: 'Every brand has a lower level or gateway item to get you into their line.
'It's a way to show off the logo but not break your bank account.'
Fraser Ross, owner of iconic Los Angeles store Kitson, who also has an outpost on in Beverly Hills, said he'll be one of the stores requiring customers to show their ID when using EDD cards.
Ross told DailyMail.com: 'I can't tell you how many people have come in with wads of cash bundled in a rubber band, or used this EDD card in the store.
'One guy kept handing over card after card, saying ''try this one'' until one finally worked. We really thank [police] for alerting us to this situation.'
'I was wondering why so many people were coming in with wads of cash or these Bank Of America debit cards,' another high-end retail employee said.
'It's been going on for months but until we received this notice from the Beverly Hills police we didn't have any idea!'
In the flyer dated September 12, Chief of Police Dominick Rivetti wrote: 'BHPD has learned there is a Fraud and Identity Theft trend occurring within California's EDD.'
Fraser Ross, owner of iconic Los Angeles store Kitson, said he'll be one of the stores requiring customers to show their ID when using EDD cards. Ross told DailyMail.com: 'One guy kept handing over card after card, saying ''try this one'' until one finally worked. We really thank [police] for alerting us to this situation'
While many needy citizens wait for their benefits, these thieves are targeting the system so that they can enjoy and show off designer logos. One recent report in Politico said the Unemployment Benefit scam could reach upwards of $26 billion nationwide
Rivetti continued: 'The BHPD has made over 20 related arrests and have recovered over 50 EDD cards that were issued fraudulently with large amounts of cash that was withdrawn from ATMs using these cards.
'This is a statewide trend we have confirmed with our law enforcement partners at the EDD, California Department of Justice, and the United States Secret Service.
'We are working closely with all agencies regarding the arrests we have made thus far in the city of Beverly Hills.'
Two days prior to the warning being released, The Beverly Hills Courier reported that the BHPD had arrested four individuals in one vehicle.
In their possession was '$500,000 worth of stolen property, albeit intangible. The contraband took the form of 40 preloaded debit cards obtained by defrauding the state's unemployment system.'
While many needy citizens wait for their benefits, these thieves are targeting the system so that they can enjoy and show off designer logos.
One recent report in Politico said the Unemployment Benefit scam could reach upwards of $26 billion nationwide.
According to police, the thieves either take the unemployment benefit cards to ATM's and clean out the balance or use the actual debit card in stores
In August, Bank Of America ATMs ran out of cash for two days, the only bank associated with the EDD benefits program.
The flyer from the BHPD concludes, 'Call 911, if you need immediate assistance with a subject who is refusing to cooperate' by handing over identification.
On May 30, Rodeo Drive was targeted by rioters and looters that spray-painted messages like 'Eat the rich' on buildings.
Since the riots, and because of pandemic health restrictions, luxury retailers have enforced policies of only allowing limited numbers of people to shop inside at one time.
As a result, long lines form outside some of Rodeo's hottest brands, like Gucci, Prada, Louis Vuitton and Dior. Some luxury retailers like Hermes and jewelry stores are now only open 'by appointment only.'
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