Category Archives: Tax Refund Fraud

Fraudsters Steal Tax, Salary Data From ADP

May 3, 2016

Identity thieves stole tax and salary data from payroll giant ADP by registering accounts in the names of employees at more than a dozen customer firms, KrebsOnSecurity has learned. ADP says the incidents occurred because the victim companies all mistakenly published sensitive ADP account information online that made those firms easy targets for tax fraudsters.

Phishing Victims Muddle Tax Fraud Fight

March 24, 2016

Many U.S. citizens are bound to experience delays in getting their tax returns processed this year, thanks largely to more stringent controls enacted by Uncle Sam and the states to block fraudulent tax refund requests filed by identity thieves. A steady drip of corporate data breaches involving phished employee W-2 information is adding to the backlog, as is an apparent mass adoption by ID thieves of professional tax services for processing large numbers of phony refund requests.

IRS Suspends Insecure ‘Get IP PIN’ Feature

March 7, 2016

Citing ongoing security concerns, the Internal Revenue Service (IRS) has suspended a service offered via its Web site that allowed taxpayers to retrieve so-called IP Protection PINs (IP PINs), codes that the IRS has assigned to some 2.7 million taxpayers to help prevent those individuals from becoming victims of tax refund fraud two years in a row. The move comes just days after KrebsOnSecurity first exposed how ID thieves were abusing the service to revisit tax refund on innocent taxpayers two years running.

Seagate Phish Exposes All Employee W-2’s

March 6, 2016

Email scam artists last week tricked an employee at data storage giant Seagate Technology into giving away 2015 W-2 tax documents on all current and past employees, KrebsOnSecurity has learned. W-2 forms contain employee Social Security numbers, salaries and other personal data, and are highly prized by thieves involved in filing phony tax refund requests with the Internal Revenue Service (IRS) and the states.

Thieves Nab IRS PINs to Hijack Tax Refunds

March 1, 2016

Last year, KrebsOnSecurity warned that the Internal Revenue Service’s (IRS) solution for helping victims of tax refund fraud avoid being victimized two years in a row was vulnerable to compromise by identity thieves. According to a story shared by one reader, the crooks are well aware of this security weakness and are using it to revisit tax refund fraud on at least some victims two years running — despite the IRS’s added ID theft protections.

IRS: 390K More Victims of IRS.Gov Weakness

February 26, 2016

The U.S. Internal Revenue Service (IRS) today sharply revised previous estimates on the number of citizens that were hit by tax refund fraud since 2014 thanks to a security weakness in the IRS’s own Web site. According to the IRS, at least 724,000 citizens were victims of refund fraud after crooks figured out how to abuse a (now defunct) IRS Web site feature called “Get Transcript” to steal victim’s prior tax da

Don’t Be a Victim of Tax Refund Fraud in ’16

December 14, 2015

With little more than a month to go before the start of the 2016 tax filing season, the IRS and the states are hunkering down for an expected slugfest with identity thieves who make a living requesting fraudulent tax refunds on behalf of victims. Here’s what you need to know going into January to protect you and your family.

Street Gangs, Tax Fraud and ‘Drop Hoes’

August 20, 2015

Authorities across the United States this week arrested dozens of gang members who stand accused of making millions of dollars stealing consumer identities in order to file fraudulent tax refund requests with the Internal Revenue Service (IRS). The arrests highlight the dramatic shift in gang activity in recent years from high-risk drug dealing to identity fraud — a far less risky yet equally lucrative crime.