The fraud has cost businesses millions. Businesses help pay unemployment benefits workers get when they're laid off.
State officials found workers cheating the system. 12,000 people took nearly $46 million in jobless benefits even though they were still working.
Previously, Illinois could take someone's income tax refund as a way to pay back the money. Now, the state can go after someone's federal tax refund as well.
If the tax money doesn't cover the debt, the state will withhold future benefits until it's all paid off. Those 12,000 people have been given warnings. They'll only lose their tax refunds if they refuse a repayment plan.