Monday, May 28, 2012

Fraudulent "early" tax refunds rampant in South Florida

Lizette Alvarez has a story in the New York Times about rampant IRS refund fraud by stolen identities, particularly in South Florida, link (website url) here.

 The refunds are often deposited to prepaid debit cards popular with people who don’t have bank accounts (the unbanked).

The story indicates the scale of the problem, overwhelming the ability of the IRS to prevent it with any reasonable procedures.   Usually the fraudulent returns are filed before the real ones, and real filers find out they have been spoofed when they try to file.

Police often find identity theft paraphernalia at routine traffic stops. 

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