28 | May 2017
Stolen Identity Refund FraudMarch 03, 2016
Stolen Identity Refund FraudThe Internal Revenue Service (IRS) is expecting to pay out over $21 billion in fraudulent tax refunds in 2016, way up from the $3.6 billion in 2012. This happens when someone files a tax return for a refund using your Social Security Number (SSN).
We have seen data breeches involving hundreds of millions of individuals in 2015 alone. It doesn't help that you receive your tax statements in the mail box with the words Important Tax Return Information Enclosed.
Identity thieves are finding that it is easier to use a stolen SSN to get a tax refund than it is to open up a credit card account. Tax refunds get put on a debit card and it is then used like cash.
A taxpayer usually discovers a fraudulent return has been filed under their SSN when their own return has been rejected with a message stating it has already been filed.
When this occurs, you will need to notify the IRS and go through the process of getting an Identity Protection Personal Identity Number. Or you can contact a Block Advisors office and get tax identity restoration assistance.
The IRS and any financial institution will never call or email asking you to provide personal information or to make a payment. Just hang up if it is a call and delete without opening any attachments if it is an email.
Tax Tip provided by:
805 D Sir Francis Drake Blvd.
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