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 Illinoisans reported the most
identity theft complaints per capita in the nation during 2021, more than 21
times the complaints filed in the state with the fewest reported cases, a new
study found.
The WalletHub analysis of states most vulnerable to identity theft and fraud
ranked Illinois 6th worst overall in the nation for its handling of the surge in
fraudsters scamming residents during the COVID-19 pandemic.
Washington claimed the top spot while Iowa boasted the lowest identity theft and
fraud rates.
The study comparing states across
14 metrics, including average loss amounts, fraud arrest rates and data disposal
laws. It also found Illinois had the nation’s worst identify-theft passport
program, which is intended to help identity theft victims regain control of
their identities, avoid mistaken arrest and dispute fraudulent credit charges.
Fraud complaints per capita and existing state legislation allowing guardians to
place a freeze on minors’ credit reports also ranked among the bottom half of
states considered.
Since the onset of the COVID-19 pandemic, the number of Americans filing jobless
claims nationally has soared to historic highs, placing unprecedented stress on
state unemployment systems.
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Illinois found it was
woefully unprepared for the deluge, with antiquated computer systems
and a botched introduction of a $22 million fix that immediately
exposed the Social Security numbers and other personal information
of nearly 32,500 claimants. The information was used by identity
thieves, according to multiple lawsuits.
Cybersecurity experts estimate the flood of imposter fraud, where
criminals file fake claims in the names of real people, likely cost
Illinois more than $1 billion.
The Illinois Department of Employment Security has declined to
release figures on how many Illinoisans reported being robbed of
their unemployment benefits during the pandemic and how much money
was stolen. Audits of IDES by federal watchdogs revealed the state
agency was late to adopt free security tools that could have
protected thousands of residents against fraud.
An audit of just the first seven weeks of federal unemployment
programs found IDES gave about $155 million to fraudsters instead of
Illinoisans. A comprehensive audit of the full 69-week period is
currently underway.
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