Tax Refund Fraud

Be on the Lookout for Tax Refund Fraud

$5.2 billion in fraudulent identity theft refunds is estimated to have been paid according to the Internal Revenue Service in 2013*. In addition, up to 18 states reported an uptick in fraudulent or suspicious activity with this year's returns possibly connected to e-filing and tax preparation software according to Forbes.

Alert Details

Tax refund fraud involving identity theft where individuals use another person’s name and Social Security number to file a fraudulent tax return in order to obtain a fraudulent tax refund is problematic each year. Perpetrators of this tax refund fraud often use existing accounts or create fraudulent accounts at credit unions as a means to collect and access the actual fraudulent funds that are distributed in a victim’s name. In addition, fraudsters may convince an existing member to receive a refund and forward the proceeds.

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