Tax Refund Fraud and Related Identity Theft
Friday, January 18th, 2013 @ 10:06PM
The Financial Crimes Enforcement Network (FinCEN) is issuing this Advisory to assist financial institutions with identifying tax refund fraud and reporting the activity through the filing of Suspicious Activity Reports (SARs).
Identity theft can be a precursor to tax refund fraud because individual income tax returns filed in the United States are tracked and processed by Taxpayer Identification Numbers (TIN) and the individual taxpayer names associated with these numbers. Fraudulent actors obtain TINs through various methods of identity theft, including phishing schemes and the establishment of fraudulent tax preparation businesses. 1 In response to this problem, the IRS has developed a comprehensive strategy that is focused on preventing, detecting, and resolving instances of tax-related identity theft crimes. 2