Multi-Million Tax Fraud Schemes

Last updated on July 3, 2021

Scammers are looking to make big money through easy methods of deceiving people. Fraud in tax is just that. Numerous multi-million tax scams have been unearthed in the recent past. Fraud in tax refunds, phishing, identity theft, fraud by tax resolution companies and tax evasion has made headlines and are keeping law enforcement agencies busy.

Today, identity theft is the most common tax theft, as recognized by the IRS. Since 2008, half a million American taxpayers have been victims of identity/wage theft. Operators steal information such as social security numbers, bank account numbers, driver’s licenses etc. to file false tax returns on behalf of taxpayers.

Running a multi-million dollar tax scam has become simpler with the use of computers. Phishing is used to dupe taxpayers into sharing their financial and personal information online, which is then used to file fraudulent tax returns by tax thieves.

Victims rarely come to know of the crime immediately. It is only after they try to file their taxes, do not receive their refund or get a notice from the IRS that they become aware of the tax fraud. That gives plenty of time for scammers to disappear with the money.

Millions of dollars can be obtained through these fraudulent tax schemes. Recently, a Californian man pleaded guilty in a multi-million dollar tax fraud scheme. He and his accomplices had filed more than 250 fraudulent tax returns that would have got them nearly $100 million from the IRS in tax refunds had the fraud continued.

Where there is big money, there is more threat. With an increase in tax fraud, taxpayers need to keep their data safe from tax scammers.