Subject: Illinois Department of Employment Security Fraud Alert
From: HowardSimon Communications <[email-masked]>
To: HowardSimon Communications <[email-masked]>
Date: Tue, 3 Nov 2020 21:12:52 +0000

HowardSimon

retirement plans * payroll solutions

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Illinois Department of Employment Security Fraud Alert

As you may be aware, there has been a huge rise  in Employment Insurance Fraud in the recent months.  IDES and the local have been covering and responding to the incidents over the past several months.  Some informational links are below.

IDES Resources:

*       https://www2.illinois.gov/ides/SitePages/NewsArticleDisplay.aspx?NewsID=510

IDES has uncovered and is investigating a widespread fraud scheme that is being conducted nationwide, impacting each state's federal Pandemic Unemployment Assistance (PUA) programs, implemented as a result of the COVID-19 pandemic.

*       https://www2.illinois.gov/ides/SitePages/NewsArticleDisplay.aspx?NewsID=514

The increase in the fraudulent unemployment claims is attributed primarily to the Pandemic Unemployment Assistance (PUA) program. Under the ambiguous federal guidelines, which were developed in haste because of the urgency of the pandemic and issued to every state without a uniform method of implementation, the potential for fraud within the system is abundant. Most recent data show there to be approximately 107,000 fraudulent claims affecting the PUA system since its launch on May 11, with just 14,500 fraudulent claims affecting the regular unemployment system since March 1.

Recent News:

*       https://abc7chicago.com/ides-fraud-illinois-department-of-employment-security-unemployment-benefits/6386058/

Pritzker said at least 120,000 "fraudulent claims" have occurred in Illinois after a national fraud outbreak in the unemployment system.

*         https://chicago.cbslocal.com/2020/10/23/illinois-unemployment-fraud-federal-inspector-general-report/

The report flags Illinois as one of the states having big problems with unemployment fraud, specifically stating Illinois is one of the states that could have done more earlier to verify identities.

What Can You Do?

There is not much you can do as a Company form a prevention perspective; it is the government systems that are the issue.  HowardSimon transmits your employee detail to Illinois though the IDES system: "MyTax Illinois", so we don't have any control over those security protocols.  However, it appears that vulnerability in the system is not at the transmission point.  We can assure you that NO HowardSimon system has been compromised.

When you receive a fraudulent claim:

*       Immediately Respond to Fraudulent Notices and Claims
*       Register for SIDES access on MyTax Illinois website to electronically receive and respond to unemployment benefit claim notices: https://www2.illinois.gov/ides/employers/more_information/Pages/Submitting_Electronic_Claim_Protests_SIDES.aspx
*       Immediately Report the Fraud to IDES:  https://www2.illinois.gov/ides/Pages/Reporting_Unemployment_Insurance_Fraud.aspx

What Should Employees Do?

Any employee that has had a claim filed in their name is a victim of identity theft.  You should inform them of the incident so that they can take appropriate action. Some steps that victims of identity theft can take are outlined below:

1-     Secure a credit monitoring service immediately.  Life Lock and many other services are available.

2-     Call all credit cards and notify them of the identity theft.  Almost all credit cards will put an extra layer of security on accounts, like a password or pin to call in.

3-     File a police report documenting the identity theft.  The police will not take any action in response to the IDES claim, but if anything occurs in the future, their will be proof of the identity theft.

4-     Employees should go through the Identify Theft process listed on: https://www.identitytheft.gov/

And:

5-     Whoever has stolen your employee's SSN could easily attempt to file a fraudulent IRS return with the employee's SSN, as the perpetrators are exploiting the tax system.  All the perpetrator has to do is mail in a 1040-EZ and request a refund before the taxpayer has filed. From the IDES claim, we know the perpetrator already has all the information required to easily do this.  While we are not aware of any IRS fraud related to the IDES fraud, this type of tax return fraud is common and easy to prevent.  To prevent the filing of a fraudulent IRS return, employees should secure a PIN from the IRS.  This will ensure no one can file a fraudulent return on their account.  There are various programs, and availability restrictions, so each employee should visit the IRS Pin Program link listed below.

IRS PIN Program: https://www.irs.gov/identity-theft-fraud-scams/get-an-identity-protection-pin

More IRS Identity Theft Resources can be found here: https://www.irs.gov/uac/taxpayer-guide-to-identity-theft

Thank You!

As always, thank you for your business, and please do not hesitate to contact us with any questions or concerns.

Retirement Plan Support:

[email-masked]<mailto:[email-masked]>

Payroll Support:

[email-masked]<mailto:[email-masked]>

General Support:

[email-masked]<mailto:[email-masked]>

Phone:

1-847-945-0340

Fax:

1-847-940-8500

HowardSimon, Inc. * 304 Saunders Road * Riverwoods, IL 60015

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