Tax season is not only about filing taxes; it's also a peak time for tax ID fraud. Stolen Identity Refund Fraud (SIRF) is a silent but dangerous aspect of the tax world.
Tax ID fraud is the illicit use of someone's details to craft a fake tax return or falsely claim tax advantages. This alarming crime drains an astonishing $5.2 billion from taxpayers yearly. The cunning move by fraudsters is their tendency to file these deceptive returns early. Armed with newly pilfered social security numbers, names, and birthdates, they aim to submit these fraudulent forms before the taxpayers do. Many remain unaware of being victims until they attempt to file their taxes and discover a duplicate submission.
So, what role does a BSA officer play in curtailing tax ID fraud? Beyond shielding clients from scams, BSA officers also spot possible tax return fraud cases. They then report them by submitting a Suspicious Activity Report (SAR). It's worth noting that numerous fraudulent returns are transacted via direct deposits into accounts, potentially within your financial institution.