CBS2 Exclusive: Crooks Using Stolen Social Security Numbers In Tax Fraud Scam
CROTON-ON-HUDSON, N.Y. (CBSNewYork) -- As taxpayers rush to make Wednesday's tax deadline, a new warning has been issued about crooks who are filing fake returns and stealing refunds.
When Tom D'Agostino went to file his taxes, he learned from the Internal Revenue Service they had already been filed.
And as CBS2's Dave Carlin exclusively reported, D'Agostino's refund was ripped off by scammers using his stolen Social Security number.
The Cortlandt Manor resident said he never dreamed he would be taking a folder with his taxes in to State Police, where dozens of his neighbors also just filed fraud reports.
"You're not the only guy out there getting it done. But it's still an annoyance," D'Agostino said.
Consumer advocates and federal investigators said this is how it works: A fraudulent tax return is created using someone else's stolen Social Security number. Then it's filed electronically.
It can be done without W-2 forms from employers. Instead, scammers use an electronic filing identification number or EFN, which is used by tax professionals.
The refund then goes to a bank card, sometimes a prepaid "Green Dot" one that the victim might not even know exists, Carlin reported.
One Westchester County woman, who asked to remain anonymous, said both her return and her Green Dot card were faked.
She said she doesn't know how much money was taken or how her Social Security number was compromised.
Investigators say crooks can buy the numbers from unscrupulous workers at trusted institutions, including schools, medical offices and military bases.
Tax fraud victims must now file their taxes the old-fashioned way: by filling them out on paper and mailing in the returns.
"The correct return has to be resubmitted. And we'll work with someone who has been a victim of fraud to help them out as quickly as possible," said Ken Adams, commissioner of the New York State Tax Department.
An IRS spokeswoman told CBS2 updated security software is stopping millions of suspicious returns every year, and new automatic filters are spotting false returns before criminals can cash in.
The IRS recommends to never carry you Social Security card with you and to protect other documents that include your Social Security number.
