New 1099-G Tax Scam Emerges From IDES Unemployment Fraud

PALOS PARK, IL — A new unemployment scam has surfaced in the south suburbs. Residents who received a 1099-G tax form from the Illinois Department of Employment Security that they did not ask for, could be victims of unemployment fraud. This latest tax scam is a ploy to get people to give up personal information, including social security and bank account numbers.

Palos Park police are investigating several cases of residents who reported receiving tax forms from IDES. Investigators are assisting residents who received a 1099-G tax form from IDES. This new version of the 1099-G form is very likely that a scammer filed for benefits in a person’s name.

A 1099-G form needs to be filled out when filing taxes if you’ve gotten money from IDES. But if you haven’t, and you get one in the mail, you could be a victim of unemployment fraud. If you are a victim, report the fraud and place alerts with the major credit bureaus.

State unemployment agencies nationwide have seen a spike in fraudulent claims since the start of the pandemic, where unsolicited debit cards were sent out to residents. The scammers are using information available on the dark web or through social media. After a period of time, the scammers submit address changes to state agency and begin collecting benefits in the victim's name. In Illinois, residents who don't report receiving the unsolicited debit cards to local police or the IDES, could be held liable and required to reimburse the state for the stolen funds.

Now, 1099-G tax forms are going out. Anyone who receives an unsolicited tax from IDES in the mail, can file a fraud report online.