Hundreds Fired in Chicago Target Loan Fraud Scandal

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Hundreds of workers at Target’s Little Village distribution center in Chicago were fired after an internal investigation uncovered a scheme exploiting the company’s employee medical loan program. Employees allegedly used a glitch that allowed them to borrow thousands of dollars but erase most of the debt after paying only $50. A ringleader reportedly charged others fees to set up the fraudulent loans. Between 400 and 700 employees were terminated over about two weeks in late July and early August 2025. Target estimates losses of more than $1 million and says the dismissals were for ethics violations, while also implementing safeguards and launching a major hiring push to replace the staff.