Hundreds of Chicago Target workers fired over alleged fraud — how a 'glitch in the system' led to $1M+ stolen

Date:2025-08-21 03:46:10 Category:News Views:1 Comment:0

Hundreds of employees at a Target distribution hub in Chicago have been fired, news outlets report, after allegedly exploiting a glitch in the company’s health care loan program — costing the retailer more than $1 million.

According to Block Club Chicago, the flaw allowed workers to borrow $3,000 and erase the balance after repaying just $50. Word of the loophole spread quickly through the Target Flow Center, and employees started joining in on the scheme.

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Charles Thrush, who first reported the story, says one person “found a glitch in the system” and encouraged others to cash in, turning the scheme into a personal payday.

“He would charge $200 to $300, basically, for all these people to get their loans,” Thrush told WGN News in a story published Aug. 19.

How widespread was it?

Thrush estimates that between 400 and 700 workers were fired over a two-week period from the end of July into August.

Target has not confirmed the exact number of terminations but said in a statement to both news outlets: “Following an internal investigation, we have terminated team members found to be in violation of our company’s code of ethics.”

For the Target employees involved, it’s unclear whether criminal charges will follow. Block Club Chicago reports the scheme may have cost the company over $1 million.

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In Illinois, health care fraud is typically prosecuted as a Class 4 felony — carrying penalties of up to three years in prison and fines of as much as $25,000 for individuals, according to law firm Dolci & Weiland.

Health care fraud isn’t limited to corporate benefits programs. The FBI estimates it costs the U.S. tens of billions of dollars each year, with schemes ranging from double billing — submitting multiple claims for the same service — to phantom billing for services never provided, or “upcoding,” where providers bill for more expensive procedures than those actually performed. These practices can drive up costs for businesses, insurers and consumers.

The real price of easy money

Some former workers told WGN News they were blindsided by the terminations, insisting they thought they were taking advantage of a benefit that offered fast cash, which they would repay over time. Others said they were shocked to learn a fraud scheme was happening at all.

“I know they’re hiring extremely mad right now. Every Tuesday and Friday you see new classes and new faces, like, every single day,” Target employee Matthew Clarke told WGN News. “They’re definitely paying enough to where you shouldn’t even have to worry about trying to steal.”

Target told the local broadcaster it has introduced new safeguards to prevent similar abuse and that the firings won’t affect day-to-day operations.

Employee loan programs and workplace perks can be a valuable resource, but they’re not free money. Read the terms closely, track your repayments and ask HR to clarify anything that seems vague. If you notice a loophole that looks too good to be true, resist the urge to test it out — exploiting it could cost you your job, your reputation or even your freedom. And if you suspect a program or offer might be a scam, report it right away to your employer or the appropriate authority.