The Federal Bureau of Investigation (FBI) is cautioning Americans about a growing tax scam involving stolen identities. According to the agency, there has been a 26% surge in identity theft claims linked to tax returns over the past year. Criminals are stealing personal identities to file fraudulent tax returns and claim the associated refunds. The FBI explains that stolen refunds are often redirected to accounts or addresses controlled by these criminals, including bank accounts, prepaid debit cards, and mail drops.
To protect against this scam, the FBI and Internal Revenue Service (IRS) recommend establishing an Identity Protection Personal Identification Number (IP PIN). This six-digit number helps prevent a taxpayer’s Social Security number from being misused for a fraudulent federal income tax return. Once enrolled in the program, taxpayers receive a new IP PIN annually, adding an extra layer of security. Victims of tax identity theft are automatically enrolled in the IP PIN program by the IRS.
To obtain an IP PIN, taxpayers must create an account on the IRS website. The FBI advises individuals who believe they are victims of identity theft to report the incident to the FBI’s Internet Crime Complaint Center (IC3) as soon as possible. For more information on setting up an account or dealing with tax-related identity theft, taxpayers can visit the IRS website.
