IL HB2560

Requires individuals and employers to report fraudulent unemployment benefit claims involving identity theft to the Department of Employment Security.

Mandates the Department respond to fraud reports within 48 hours and notify the reporting party within 15 calendar days whether monetary payments were issued on the fraudulent claim.

Prohibits the Department of Employment Security and Department of Revenue from imposing penalties or seeking reimbursement from individuals or employers unless they knowingly participated in the fraudulent scheme.

Authorizes individuals and employers to recover reasonably foreseeable expenses from the State if a breach of State systems caused the fraudulent claim.

Requires all fraud and identity theft cases be referred to the Attorney General, who must report investigation results to victims within 90 days including whether prosecution action was taken.