PaymentsJournal
No Result
View All Result
SIGN UP
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
PaymentsJournal
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
No Result
View All Result
PaymentsJournal
No Result
View All Result

Stolen Data Too Often Fuels Tax-Related Fraud

By Tom Nawrocki
March 5, 2025
in Analysts Coverage, Fraud & Security
0
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
Advanced Graphing Tools Fighting Identity Theft, Central Bank ID Verification, data fraud

Advanced Graphing Tools May Help Solve the Puzzle for Fighting Identity Theft

While many consumers are busy preparing their 2024 tax returns, a new study shows that nearly a thousand data breaches last year could have led to tax fraud.

Data from credit agency TransUnion found that there were 970 data breaches in 2024 where criminals obtained the types of personally identifiable information (PII) required for various forms of tax fraud. In total, 640 million consumer records were exposed, containing critical details like Social Security numbers, address histories, and full names.

Data breaches are significant because even a small amount of stolen information can enable criminals launch attacks. Exposed data can help criminals file false tax returns in a victim’s name or access bank accounts to intercept tax refunds. Many criminals also target call centers to verify stolen PII or use it to gain access to online government portals.

Keeping Data Out of Criminals’ Hands

A fairly new scheme involves a mailing that arrives in a cardboard envelope from a delivery service. The letter, featuring an IRS masthead, falsely claims to be “in relation to your unclaimed refund.” It requests sensitive personal information from taxpayers—including photos of driver’s licenses—which identity thieves can use to obtain a tax refund.

To protect against tax-related identity theft, experts recommend that consumers file their taxes early and electronically rather than mailing documents. Additionally, they suggest having tax refunds sent electronically instead of receiving a check by mail.

“You should also request an Identity Protection PIN through the IRS website,” said Jennifer Pitt, Senior Fraud & Security Analyst at Javelin Strategy & Research. “This prevents someone from being able to use your Social Security number to file taxes. And sign up for credit monitoring or identity protection services to monitor any use of your personal information.”

Watch How Notices Are Delivered

The IRS continues to see a barrage of email and text scams targeting taxpayers. These messages arrive as unsolicited texts or emails, attempting to lure unsuspecting victims into providing personal and financial information.

The IRS advises taxpayers to pay close attention to how they receive communications. The agency primarily contacts taxpayers through regular U.S. mail delivered by the U.S. Postal Service. Emails or texts are generally sent only with the taxpayer’s permission.

While the agency may call to verify information or set up a meeting, it never leaves prerecorded voicemails or robocalls—taxpayers can safely ignore those. Additionally, the agency will never initiate contact through social media.

0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
Tags: FraudInternal Revenue ServiceIRSPIITax FraudTax SeasonTransUnion

    Get the Latest News and Insights Delivered Daily

    Subscribe to the PaymentsJournal Newsletter for exclusive insight and data from Javelin Strategy & Research analysts and industry professionals.

    Must Reads

    embedded payments

    Embedding Payments for Growth: How ISVs Can Scale Through Vertical Focus and Partnerships

    March 31, 2026
    ACH fraud monitoring

    From a Checkbox to a Differentiator: Redefining ACH Fraud Monitoring

    March 30, 2026
    Digitization and Multi-Brand Cards: Prepaid Trends. Bancorp Bank prepaid card fees, Bitpay Prepaid Card, mobile prepaid debit cards, prepaid cards for councils

    Turning a Prepaid Card into a Long-Term Relationship

    March 27, 2026
    payments fraud, faster payments fraud, financial fraud

    The Emotional Toll of Financial Fraud

    March 26, 2026
    hyperliquid

    What Hyperliquid Reveals About the Future of Trading

    March 25, 2026
    Modernizing Payments modernizaion

    Modernizing Payments: Tackling the Toughest Tech Challenges

    March 24, 2026
    fintech bank data

    The Growing Data Battle Between Banks and Fintechs

    March 23, 2026
    7 Fabulous AI Chatbot Trends for Small Business, AI chatbots in business, chatbots instant gratification millennials

    What Banking Customers Want—and Don’t Want—From Chatbots

    March 20, 2026

    Linkedin-in X-twitter
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter

    ©2026 PaymentsJournal.com |  Terms of Use | Privacy Policy

    • Commercial Payments
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    No Result
    View All Result