Tax Fraud Through Identity Theft on the Rise

Tax fraud through identity theft has become a growing problem over the past several years, and it’s only going to get worse as users input their personal information in more and more devices.

The IRS acknowledges that tax fraud is a major problem, and it’s one that the agency is struggling to combat. In response, the IRS has set up a tax SWAT team of sorts, whose only goal is to identify and prevent tax fraud.

The IRS may be working hard to fight tax fraud, but it isn’t likely to see the numbers go down anytime soon–in fact, some analysts suggest that tax fraud through identity theft will only get worse until the IRS, and other financial institutions, are able to come up with a solution that keeps individuals’ privacy intact.

“The IRS is confronted with the same challenges as every major financial institution in preventing and detecting identity theft,” said Steven Miller, the IRS’ deputy commissioner for services and enforcement, at a recent Senate hearing. “We cannot stop all identity theft. However, we are better than we were, and will get better still.”

“There’ve been hundreds of thousands of cases where unsuspecting law-abiding taxpayers, their lives are being turned upside down by identity theft and tax refund fraud,” Bill Nelson, D-Fla., said in response to Miller, pressuring the agency to step up their efforts. “To the poor taxpayer, it’s unfair and unjust.”

Do you think the IRS is doing enough to prevent tax fraud through identity theft?

via Today