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'Code of ethics' | Target fires hundreds of employees over $1m loan glitch scam

target store

Target has dismissed hundreds of workers at its Southwest Side distribution facility after an internal investigation into a healthcare loan scheme that nearly cost the company $1 million.

Employees at the Target Flow Center said word spread quickly among coworkers about the glitch. The issue allowed staff to borrow $3,000 and pay back only $50 for the balance to be erased.

According to reports, one employee uncovered the loophole and helped colleagues exploit it. The alleged ringleader charged between $200 and $300 to assist participants, and eventually hundreds of employees were involved.

“You’re seeing anywhere from 400 to 700 firings from Target,” said one report.

Internal probe and mass terminations

The company has not confirmed exact figures but issued a statement addressing the outcome. “Following an internal investigation, we have terminated team members found to be in violation of our company’s code of ethics.”

Block Club Chicago reported that the scheme could have cost the retailer close to $1million. While the internal inquiry has concluded with terminations, it remains unclear whether criminal charges will be pursued against those involved.

Current staff expressed surprise at the scale of the fraud. One employee, said: “I know they’re hiring extremely mad right now. Every Tuesday and Friday you see new classes and new faces, like every single day. They’re definitely paying enough to where you shouldn’t even have to worry about trying to steal.”

Safeguards and ongoing hiring

Target said safeguards have been implemented to ensure such a breach does not reoccur. It added that business operations remain unaffected despite the large number of dismissals.

The company is actively replenishing its workforce at the Little Village site, with visible recruitment drives underway following the firings.

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