[Krebs on Security] File Your Taxes Before the Fraudsters Do

Krebs on Security has posted a new item.

Jan. 31 marked the start of the 2014 tax filing season, and if you haven't yet
started working on your returns, here's another reason to get motivated: Tax
fraudsters and identity thieves may very well beat you to it.

According to a 2013 report from the Treasury Inspector General's office, the
U.S. Internal Revenue Service (IRS) issued nearly $4 billion in bogus tax
refunds in 2012. The money largely was sent to people who stole Social Security
numbers and other information on U.S. citizens, and then filed fraudulent tax
returns on those individuals claiming a large refund but at a different
address.

There are countless shops in the cybercrime underground selling data that is
especially useful for scammers engaged in tax return fraud. Typically, these
shops will identify their wares as "fullz," which include a consumer's first
name, last name, middle name, email address (and in some cases email password)
physical address, phone number, date of birth, and Social Security number.



The shop pictured above, for example, caters to tax fraudsters, as evidenced by
its advice to customers of the service, which can be used to find information
that might help scammers establish lines of credit (PayPal accounts, credit
cards) in someone else's name:

"You can use on paypal credit, prepaid cards etc. After buying try to search by
address and u can see children, wife and all people at this address," the fraud
shop explains, advising customers on ways to find the names and additional
information on the taxpayer's children (because more dependents mean greater tax
deductions and higher refunds): "It's great for tax return method, because u can
get $$$ for 'your' children."

http://krebsonsecurity.com/2014/02/file-your-taxes-before-the-fraudsters-do/

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BrianKrebs
http://krebsonsecurity.com

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