Identity Theft and Illegal Tax Refunds

[JLB Please excuse me, I'm a Dick. Not a moron just a Dick Find all posts View Profile Close JLB]

Did anyone see the story this past week?

The main character, and older lady, talked about how miserable her life has been since she had her identity stolen and a false tax return filed in her name. She's in Ft. Lauderdale.

Then, they interviewed a Tampa detective, and showed streets in the seemy sections of Tampa. He sold the drug sellers stopped selling drugs because they can file 10 false tax returns a day and make $50,000, and watch cartoons while they're doing it.

Well, we had our credit cards compromised in Tampa, so that's hitting pretty close to home.

Does anyone know if this identity theft/fake tax returns started with and is tied to efiling?

Is the old-fashioned mail-in-a-hard-copy safer, do you think?

We have always done that because it has always been the story that you are less likely to be audited if your return goesin at the same time as the big bulk of them, not that there is anything we would be audited about.

[M. Henley Class President Find all posts View Profile Close M. Henley]

They have gadgets that can read your credit card while in your wallet and on your hip. Not much safe anymore.

[GrayFal Silver Contributor and supermoderator Find all posts View Profile Close GrayFal]

A friend just posted that her SS # was hacked and that her $5,000 tax return was being sent to a different account....

"Ok seems I had my identity stolen!
So far all that we know is my SS has been used to file tax return for this year and was flagged. I was getting 5000. Back to a bank account that was not mine.
I just filed a police report and have to call credit reports to see what else I have been doing and where. I hope this is it and nothing more."
and
" have no idea how they got my SS as I don't give it to anyone unless I work for them . Being I have not worked in 18 years I gave it to no one. As for what bank it was going to be sent to IRS won't tell me but all info was to this address . I guess the fact they tried to send it to different account then one on file and the fact I was due 5000 first time in 18 years was big flag. I just hope that the letter was official IRS and not scam as mark gave them tons of info for the asking. All the time I was telling person on phone I have alarms going off not to tell them anything. she said I understand but it's ok .
Mark and I will go to local IRS office with paper and try to get more info on Monday as to w2 and what bank they where using so we can pass info to police ."

DH is in banking and he said it has been rampant this year.

[stan2u Member Find all posts View Profile Close stan2u]

The old-fashioned paper tax return won't help you - the info is stolen PRIOR to your filing. The thief files a fake automate return and gets your refund. So by the time YOU file they already have the money.

Believe it or not, there is a simple solution to this type of theft. It occurs because the thief files a change in bank info - where the refund goes - at the same time the false tax return is filed. The simple solution is: when the bank changes DON'T AUTOMATICALLY GENERATE A REFUND! Instead generate a letter or Email to the taxpaper - at their current address - asking them to verify the change. In writing. Make it take 60 days. Slow the process down. Make them work for it. And above all, don't issue refunds in the form of pre-paid debit cards. You might as well send cash in the mail! How stupid is that practice?

[M. Henley Class President Find all posts View Profile Close M. Henley]

Hmmm....

JLB, this might be your path to breaking the OF Herd completely?!?

[JLB Please excuse me, I'm a Dick. Not a moron just a Dick Find all posts View Profile Close JLB]

The old-fashioned paper tax return won't help you - the info is stolen PRIOR to your filing. The thief files a fake automate return and gets your refund. So by the time YOU file they already have the money.

Believe it or not, there is a simple solution to this type of theft. It occurs because the thief files a change in bank info - where the refund goes - at the same time the false tax return is filed. The simple solution is: when the bank changes DON'T AUTOMATICALLY GENERATE A REFUND! Instead generate a letter or Email to the taxpaper - at their current address - asking them to verify the change. In writing. Make it take 60 days. Slow the process down. Make them work for it. And above all, don't issue refunds in the form of pre-paid debit cards. You might as well send cash in the mail! How stupid is that practice?

Maybe the IRS and VA use the same system.