Journal & Topics Media Group

Identity Theft Scam Hits Elk Grove Hard

Cases Up From 40 In 2019 To 315 in 2020; Former Police Chief Among Those Targeted


Steve Schmidt, Elk Grove Village trustee and former police chief at a village board meeting last year. (Tom Robb/Journal photo)

Elk Grove Village trustee and former police chief Steve Schmidt said he was the victim of a recent identity theft involving the Illinois Dept. of Employment Security. He is not alone. 

Elk Grove Village Police Chief Chuck Walsh said the sophisticated identity theft scam may be tied to a July 2019 computer hack of the credit reporting agency Equifax, which saw credit information for millions compromised.

In 2019, Elk Grove Village police reported 40 identity theft crimes for the year. In 2020, that number jumped to 315. Walsh said most related to the IDES scam. As of Wednesday, he said there had already been 58 cases of identity theft in January 2021.

Reviewing 2020 crime statistics, Walsh said identity theft saw the largest increase in any category of crime tracked by Elk Grove Village police.

According to the chief, scammers apply for unemployment in a person’s name using information from the Equifax hack. IDES then sends a letter along with unemployment benefits in the form of a preloaded debit card to that person.

Walsh said the danger and goal for criminals comes when the debit card is activated. He said when the card is activated, those perpetrating the scam are able to confirm a person’s credit information from the Equifax hack and then work to establish credit, opening accounts, applying for credit cards, and loans in the victim’s name.

Walsh said those receiving unemployment benefits that were not applied for should not activate the debit card. He said those receiving the cards should contact both police and IDES fraud section officials, along with checking their credit history, opening a credit monitoring account and placing a freeze on their credit so no new accounts may be opened.

Police would provide a report number and assist those with limited internet access to contact and process IDES claims and with credit reporting services, Walsh said.

Beyond credit, Walsh advised everyone to file state and federal income taxes as soon as possible so criminals do not do that first.

Schmidt said he did not activate the card he was sent. He filed a police report, checked his credit, and opened a credit monitoring account.

Elk Grove Village Police Chief Charles “Chuck” Walsh at his desk. (Photo provided)

Walsh said this is a nationwide scam, which has hit Illinois particularly hard. He said Illinois is No. 13 in falling victim to this identity theft scam.

Walsh said the scam’s rise has followed the COVID-19 pandemic. He said besides the Equifax hack, factors that contributed to the ability of scammers to perpetrate the scam include working from home along with an unprecedented wave of first-time unemployment claims.

As “stay-at-home” orders and closed or restricted businesses such as bars and theaters, schools, and other non-essential businesses, first-time claims for unemployment nationally were reaching one million new claims a week. In Illinois IDES phone lines were jammed and sent internet servers crashing from the volume. Walsh said IDES workers had little time to look for red flags, identify or investigate suspicious or fraudulent claims.

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