Suit claims Bank of America culpable in EDD fraud.

Bank of America accused of negligence by jobless workers

Bank of America exposed unemployed California workers to fraud after the banking behemoth failed to properly safeguard their benefits accounts, a federal class-action lawsuit claims in the latest twist involving a widening Employment Development Department fraud scandal.

The lawsuit alleges that that financial giant, despite being required by its exclusive contract with the EDD to provide secure accounts for the processing of unemployment benefits, didn’t use an array of techniques such as industry-standard chip technology to help ward off fraud against unemployed workers.

“Bank of America has failed to respond in a timely way to thousands of defrauded customers,” the lawsuit claims. “The bank’s ineffectual response to rampant fraud takes various forms.”

Among the blunders and missteps by the bank, according to the lawsuit filed in U.S. District Court in San Francisco:

• Failing to answer the customer service phone lines it advises EDD debit cardholders to call to report fraud.

• Opening claims and then immediately closing them.

• Failing to extend provisional credit to EDD cardholders.

• Freezing EDD cardholder accounts without warning or explanation.

“My account was emptied by unauthorized transactions on my Bank of America EDD debit card,” said Jennifer Wick, a San Francisco resident who is the named plaintiff in the lawsuit.

Yick, a real estate agent, said she did all she could to notify Bank of America that she had been defrauded.

“When I tried to report the fraud to the bank, I was repeatedly disconnected, told to call back later, transferred to various departments to no end,” Yick said.

The bank said Friday that it’s being diligent in its efforts to combat fraud linked to EDD unemployment benefits.

“Bank of America is working every day with the state to prevent criminals from getting money and ensuring that legitimate recipients receive their benefits,” said Bill Halldin, a spokesperson for North Carolina-based Bank