The FBI is warning the public about criminal actors stealing US taxpayer identities to file false tax returns and fraudulently claim refunds. The FBI’s Internet Crime Complaint Center (IC3) has received over 1,000 complaints about identity theft in connection with tax returns within the past year representing a 26% increase from the previous year. Stolen refunds are often redirected by criminal actors to accounts or addresses they control, including bank accounts, prepaid debit cards, mail drops and/or third-party accounts.
The IRS recommends establishing an Identity Protection Personal Identification Number (IP PIN), a 6-digit number assigned to taxpayers to help prevent the misuse of a taxpayers’ Social Security number on fraudulent federal income tax returns.
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Source: U.S. Federal Bureau of Investigation Cyber Division
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