Criminals are utilizing their Internet connection to file false tax returns that help them steal refunds from the innocent. In 2013, fraudulent returns saw almost $4 billion sent into the hands of scam artists. Making things worse is the fact that the Internal Revenue Service is having a hard time stopping the fraud from happening in the first place.

The United States Attorney General, Eric Holder, says that 880 people have been charged to date, but also says that the scale and scope of the tax fraud schemes has grown substantially. Holder has been a victim of tax fraud himself. Two Georgia men recently plead guilty to charges stemming from their attempt to get a refund by using Holder’s name, Social Security number and date of birth on returns.

Thieves manage to steal refunds by mining databases for Social Security numbers, whether they be from workplaces or sources available to the public. No one is immune from theft as victims include children and the deceased. Criminals take the information, enter it into online forms, then submit them through an Internet connection. They are taking the risk that the owner of the Social Security number hasn’t filed yet, or is unable to file. Online tax return portals enable thieves to submit thousands of returns, then wait and see which ones are going to go through. The ones that are accepted by the IRS result in a tax return that is sent to the thieves.

The IRS is working on combating the crime and has had several successful prosecutions to date. Some of the tactics employed are keeping an eye out for too many returns going to the same address, returns sent overseas and watching for abuse of identification numbers assigned to tax return companies. In the meantime, everyone who files taxes needs to be careful with their personal information so it doesn’t get stolen.

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