Taxpayers are expected to be stuck holding a hefty bill once all the unemployment benefits fraud at the Illinois Department of Employment Security (IDES) is sorted out.
With more hearings scheduled, IDES officials recently revealed they had already paid out in excess of $1.5 million in fraudulent claims.
Meanwhile, ordinary Illinoisans are being told the agency does not have adequate staff to operate, slowing legitimate payments.
Federal unemployment funds are covered by state and federal unemployment insurance taxes that employers pay.
During a recent hearing, state officials indicated they prevented at least 262,437 Pandemic Unemployment Assistance fraud claims in 2020 and another 110,842 in 2021. For Unemployment Insurance fraud, the state says it stopped 490,735 cases in 2020 and 664,460 cases in 2021.
Illinois lawmakers are also contending with the problems many unemployed residents have faced in being ordered to pay back overpaid benefits they have received. State officials have insisted those individuals must apply for a federally approved waiver from the state. More hearings about the state’s unemployment system of operation are expected.
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