IDES Risk Management & Mitigation 3 — Questions and Answers
Question 1: An IDES risk analyst notices a cluster of claims filed from the same IP address by individuals who all list the same employer as their last job. Which mitigation step should be taken FIRST?
- Immediately deny all claims in the cluster
- Flag the claims for coordinated fraud investigation and place payments on hold pending review (Correct answer)
- Contact the employer directly and request payroll records
- Send identity verification letters to all claimants
Correct answer: Flag the claims for coordinated fraud investigation and place payments on hold pending review
Clustering indicators suggest coordinated identity theft or employer collusion, requiring immediate flagging and payment hold while a coordinated fraud investigation is opened.
Question 2: Under the Illinois UI Act, what is the maximum additional penalty percentage assessed on a fraudulent overpayment in addition to requiring full repayment?
- 10%
- 15%
- 25% (Correct answer)
- 50%
Correct answer: 25%
Illinois law imposes a penalty of 25% of the fraudulent overpayment amount in addition to requiring full repayment of the improperly received benefits.
Question 3: A claimant reports they are self-employed part-time while receiving UI benefits. Which IDES risk management protocol governs whether they remain eligible?
- Self-employment always disqualifies a claimant from receiving benefits
- Net self-employment earnings are deducted weekly and eligibility is determined by the earnings test (Correct answer)
- Self-employment income is ignored if less than the weekly benefit amount
- Claimants must suspend their claim for any week they perform self-employment activities
Correct answer: Net self-employment earnings are deducted weekly and eligibility is determined by the earnings test
Under Illinois law, net earnings from self-employment are treated as wages and deducted from the weekly benefit amount, with eligibility determined by whether the claimant's earnings exceed the partial benefit threshold.
Question 4: Which IDES risk mitigation tool is specifically designed to detect claimants who have returned to work with a new employer but have not reported the employment?
- Benefit Payment Control (BPC) crossmatch with quarterly wage records (Correct answer)
- E-Verify employer enrollment verification
- IRS 1099-G reconciliation audit
- Federal Employer Identification Number (FEIN) validity check
Correct answer: Benefit Payment Control (BPC) crossmatch with quarterly wage records
The Benefit Payment Control crossmatch compares ongoing benefit payments against quarterly employer wage records to identify unreported return-to-work situations.
Question 5: A seasonal worker files for UI benefits immediately after their seasonal layoff. What risk factor does IDES evaluate to determine if the employer's account should be relieved of charges?
- Whether the claimant has prior seasonal employment history
- Whether the employer notified the claimant at hire that the position was seasonal and a return date was provided (Correct answer)
- Whether the claimant refused similar seasonal work the prior year
- Whether the employer is classified under a seasonal industry NAICS code
Correct answer: Whether the employer notified the claimant at hire that the position was seasonal and a return date was provided
For an employer to receive charge relief on seasonal layoff claims, Illinois law generally requires that the employee was notified at hire that the work was seasonal and that a specific return date was communicated.
Question 6: During an IDES audit of an employer's UI tax account, auditors find that workers classified as 1099 independent contractors meet the ABC test criteria for employees. What is the PRIMARY risk to the employer?
- Criminal prosecution for tax evasion
- Retroactive UI tax assessments, interest, and penalties on misclassified worker wages (Correct answer)
- Immediate revocation of the employer's business license
- Forfeiture of all pending UI tax credits
Correct answer: Retroactive UI tax assessments, interest, and penalties on misclassified worker wages
Worker misclassification results in retroactive UI tax liability on all misclassified wages, plus applicable interest and penalties under the Illinois UI Act.
Question 7: Which scenario represents the LOWEST fraud risk level under IDES payment integrity protocols?
- A claimant files a new claim within 30 days of a prior fraud determination
- A retiree drawing full Social Security who files a claim after part-time job loss (Correct answer)
- A claimant whose SSN was flagged in a prior benefit year for identity theft
- A claimant with a prior overpayment balance who has not made a repayment in 90 days
Correct answer: A retiree drawing full Social Security who files a claim after part-time job loss
A retiree with part-time job loss has a straightforward, verifiable employment history and known pension income, presenting fewer fraud indicators than the other scenarios.
IDES Risk Management & Mitigation 3
An IDES risk analyst notices a cluster of claims filed from the same IP address by individuals who all list the same employer as their last job.
Which mitigation step should be taken FIRST?