Jan. 31 marked the start of the 2014 tax filing season, and if you haven’t yet started working on your returns, here’s another reason to get motivated: Tax fraudsters and identity thieves may very well beat you to it.
According to a 2013 report from the Treasury Inspector General’s office, the U.S. Internal Revenue Service (IRS) issued nearly $4 billion in bogus tax refunds in 2012. The money largely was sent to people who stole Social Security numbers and other information on U.S. citizens, and then filed fraudulent tax returns on those individuals claiming a large refund but at a different address.
There are countless shops in the cybercrime underground selling data that is especially useful for scammers engaged in tax return fraud. Typically, these shops will identify their wares as “fullz,” which include a consumer’s first name, last name, middle name, email address (and in some cases email password) physical address, phone number, date of birth, and Social Security number.
The shop pictured above, for example, caters to tax fraudsters, as evidenced by its advice to customers of the service, which can be used to find information that might help scammers establish lines of credit (PayPal accounts, credit cards) in someone else’s name:
“You can use on paypal credit, prepaid cards etc. After buying try to search by address and u can see children, wife and all people at this address,” the fraud shop explains, advising customers on ways to find the names and additional information on the taxpayer’s children (because more dependents mean greater tax deductions and higher refunds): “It’s great for tax return method, because u can get $$$ for ‘your’ children.”