There is no question. Tax returns are a prime target for criminals. Last year, tax fraud totaled $6.5 billion and this is expected to grow and continue to be a huge issue for federal and state governments as well as for our fellow citizens. Thanks to the vast amounts of information exposed through widespread data breaches, fraudsters have been able to acquire “perfect identities” from places such as the Dark Web. A “perfect identity”contains sufficient personal identifiable information (PII) from legitimate consumers which can be used to impersonate an individual and file a falsified tax return. This can result in fraudulent tax refunds in the thousands of dollars.
IDology has had great success in working with tax preparation customers in lessening tax fraud. We serve the major tax preparation companies, providing a dynamic solution that enables a positive experience for legitimate citizens while also stopping fraudulent returns. It is important to keep in mind that legitimate citizens deserve a smooth, friction-free experience with prompt access to their refunds. Fighting fraud is not a static battle – so employing a solution that allows you to dynamically evaluate risk and escalate to higher levels of verification when needed is essential.
Recently, IDology’s CEO, John Dancu, sat down to talk about tax fraud and what we do to help prevent fraud in the tax market. View this new Leadership Video below: