Search results for: tax identity theft

In the past week, the United States government started issuing Economic Impact Payments (EIP) of up to $1,200 per qualified individual and $500 per child. The amount of the EIP received depends on one’s adjusted gross income from the 2019 (or 2018) federal tax filing. If a taxpayer who is qualified to receive the check has set up a direct deposit with the Internal Revenue Service (IRS), that taxpayer’s EIP check will be (or already has been) directly deposited by the IRS into that taxpayer’s bank account.

This is where the scammers come in. Scammers know that not everyone is eligible for the EIP, or if they are, they might not know whether or not they have set up a direct deposit with the IRS, or if they haven’t done so, how they will receive their check. In desperate times, people do desperate things, like give their personal information to strangers over the telephone.

Scammers know that people are scared and desperate because of this pandemic, that many have lost their jobs or are working reduced hours and working from home. They are taking advantage of the situation by calling vulnerable people on the telephone, presenting themselves as an IRS official, promising things that aren’t true, and asking for personal information, such as Social Security numbers, so they can use the information to perpetrate fraud.

This is not a new scam. What is new is the fact that people are more vulnerable than ever before because of the coronavirus pandemic, including new working situations or no work at all, and most of the country is stuck at home. Although the circumstances are different, the scam is the same and the IRS is not changing its usual procedures. The IRS is not going to call you over the telephone about your check. The IRS is not going to send you an email with a link or an attachment about your check. The IRS is not going to ask for any of your personal information either over the telephone or via email. The IRS is direct depositing your check into your bank account. If you have not set up direct deposit, then the IRS gives instructions on its website about how you will receive your check. The IRS will not do anything over the telephone, so if someone calls pretending to be from the IRS, know that it is a scam. According to the IRS Criminal Investigation unit, it “is actively working to combat scam artists trying to exploit Economic Impact Payments. So far, the scams CI has already seen look to prey on vulnerable taxpayers who are unaware of how the payments will reach them. IRS CI is prioritizing these types of investigations to help protect taxpayers and the tax system.”

Never give your personal information to anyone over the telephone. The Federal Trade Commission recently reported that it has received 18,235 reports from consumers who have lost more than $13.44 million in COVID-19 scams since January 1, 2020. For more information about ways to protect yourself from identity theft, go to https://www.consumer.ftc.gov/.

I just read an article about a nurse from Florida who was convicted of wire fraud, theft of government funds, possession of unauthorized access devices and aggravated identity theft.

The nurse worked in a nursing home between October of 2011 and December of 2012 and while employed in that capacity, she stole the personal information of 26 patients, and had access to the personal information of up to 150 residents of the nursing home. Continue Reading Privacy Tip #113 – Protect Seniors’ Personal Information

Last week, the Internal Revenue Service (IRS) and Federal Student Aid (FSA) announced that the Data Retrieval Tool (DRT) on fafsa.gov and StudentLoans.gov will be unavailable until extra security protections could be added. Since 2010, students have been able to use the DRT to transfer tax data directly into the Free Application for Federal Student Aid (FAFSA). In early March, the DRT was disabled after it was discovered that identity thieves may have used personal information obtained outside the tax system to access the FAFSA form in an attempt to obtain tax information. The IRS is continuing to investigate whether this use of the tool contributed to fraudulently filed tax returns.

While the IRS identifies taxpayers whose personal information may have been at risk, it is marking and locking down those taxpayer accounts in order to prevent fraudulent tax return filings. Currently, the IRS is finalizing plans to notify affected taxpayers about identity theft concerns. The IRS has not yet determined the scope of affected taxpayers.

In the meantime, students will have to manually enter 2015 tax information into the FAFSA form. Borrowers applying for the income-driven repayment (IDR) plan will need to submit alternative documentation of income to their federal loan services after completing and submitting the online IDR application.

The federal government has arrested 32 members of the Insane Crip gang and charged them with 283 counts of criminal conspiracy, 299 counts of identity theft, 226 counts of grand theft and 58 counts of attempted theft through a $14.3 million identity theft and tax fraud scheme of filing fraudulent tax returns.

Millions of Americans have been victims of tax return fraud, and although this is small solace, it’s a solace nonetheless.

Advanced Data Processing, Inc. and Intermedix Corp. were sued in federal court in Florida last week for violating the Health Insurance Portability and Accountability Act (HIPAA) for failing to protect the health information of “potentially millions” of individuals.

Plaintiffs allege that for several months in 2012, an employee of Intermedix viewed health information of patients that used ambulances without authorization. This information, including patients names, dates of birth, Social Security numbers and health insurance information was then given or sold to others who used the stolen information to file fraudulent tax returns with the IRS and obtain refunds.

Significantly, plaintiffs allege that they were not told of the incident, and that Intermedix merely posted a notice about the incident on its website in 2014 that was not prominent on the website. Plaintiffs allege this did not constitute notice as most of the members of the proposed class did not have a relationship with Intermedix, which processes claims for health care providers. The named plaintiff was taken by an ambulance to a hospital in California in 2012, but did not learn of the incident until April of 2015. He alleges that he has been the victim of identity theft as a result of the incident.

Plaintiffs immediately moved to certify the class and the Judge denied the Motion the next day saying it was premature.