After massive fraud, tech official calls for IDES overhaul
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[August 20, 2021]
By Kevin Bessler
(The Center Square) – As cases of fraud
continue to plague Illinois’ unemployment benefit system, a technology
official said the state needs to overhaul the program immediately.
The Illinois Department of Employment Security said close to $15 million
has been paid to fraudsters, but that doesn't include identity
theft-related unemployment fraud.
Haywood Talcove, the CEO of LexisNexis Risk Solutions Government Group,
said given the state has paid out $23 billion in benefits, it is likely
Illinois has lost $1 billion to criminals.
“The failure to have an identity fraud solution, which they still don’t
have today, would have cost the state maybe a million bucks and they
would have saved over $1 billion,” Talcove said.
The state’s unemployment spiked last year when Gov. J.B. Pritzker issued
executive orders effectively shutting down many businesses to indoor
service for weeks in an effort to reduce the spread of COVID-19.
As the rest of the state gets back to business, IDES offices continue to
be closed to the public.
In July, the Illinois Auditor General released an audit of IDES for
fiscal year 2020. It showed IDES gave money to people who had died,
kids, and people who never existed.
IDES officials released a statement after the audit and said they were
already working on changes.
“It is no surprise that in states across the country the PUA program has
been the epicenter for widespread fraud and overpayments, not to mention
the issues legitimate claimants may have accessing the system," the
statement said. "The Department agrees with the auditors recommendations
and has already been working to make improvements to the program that
address the recommendations based on the department’s own internal
reviews."
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Senate Republicans are calling for a broader audit of IDES and accusing
Pritzker’s administration of trying to hide the true scope of the
problems.
Talcove said the state should be monitoring the web for potential
schemes.
“On the 'Dark Web' explains how to get passed the Illinois Department of
Employment Services tools to get a benefit paid,” Talcove said. “They
should know about that before I know about that.”
Talcove said Illinois would benefit if state officials worked with the
private sector to upgrade computer systems and procedures, which would
eliminate much of the fraud.
He warned lawmakers during a cybersecurity hearing in July that scammers
who made a fortune defrauding the state are not going to stop with
unemployment benefits.
Talcove said with the COVID-19 delta variant gaining steam and an
uncertain economic future, Pritzker needs to fix these issues before the
next crisis.
“It is really going to take his leadership to get in there and really
get this thing cleaned out, or they are going to continue to squander
public funds,” Talcove said. |