Officials project that tax refund identity fraud, whereby criminals file bogus tax returns in the name of unsuspecting taxpayers and route the direct-deposit refunds to their own accounts, will cost taxpayers more than USD 21 billion by 2020. Further, 2013 had a 66% increase over 2012 in the number of identity theft related criminal investigations initiated by the Internal Revenue Service for refund fraud.
Tax agencies can use the AOA for Government services to verify identity information from tax return filings with the identity information of the bank account and determine if there is a match before issuing the refund.
Early Warning provides risk management solutions to a diverse network of 900 financial institutions, government entities and payment companies, enabling businesses and consumers to transact with safety.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now