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Phishing Victims Muddle Tax Fraud Fight - Krebs on Security

Many U.S. citizens are bound to experiencedelays in getting their tax returns processed this year, thanks largely tomore stringent controls enactedby Uncle Sam and the states to block fraudulent tax refund requests filed by identity thieves. A steady drip of corporate data breaches involving phished employee W-2 information is adding to the backlog, as is an apparent mass adoption by ID thieves of professional tax services for processing large numbers of phony refund requests.

According to data released this week by anti-fraud company iovation, the Internal Revenue Service is taking up to three times longer to review 2015 tax returns compared to past years.

Julie Magee, commissioner of Alabama’s Department of Revenue, said much of the delay this year at the state level is likely due to new “fraud filters” the states have put in place with Gentax, a return processing and auditing system used by about half of U.S. state revenue departments. If the states can’t outright deny...(continued)

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