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As an army of investigators tries to pin down the scope of unemployment benefit fraud in California, the head of a security firm working for the state is warning that payments of fraudulent claims could more than double the $4 billion previously estimated, and that a flood of those claims involve overseas crime rings.

At least 10% of unemployment claims may have been fraudulent before controls were installed in October, according to Blake Hall, founder and chief executive of the company ID.me., which has been hired by the state Employment Development Department to weed out fraud. A 10% fraud rate could total $9.8 billion of the benefits paid from March through September.

Much of the fraud in California and other states is coming from organized criminal gangs operating in some 20 foreign countries, including Russia, China, Nigeria, Ghana, Turkey and Bulgaria, Hall said.

“When the Russians and the Nigerians and the Chinese are the players on the field, they are going to put up some points,” Hall told The Times. “This is a very sophisticated cyberattack that’s being run at scale.”

Read the full story on LATimes.com.