(WBRE/WYOU) — In a release, the Federal Bureau of Investigation (FBI) is warning the public of criminal actors stealing the identities of U.S. taxpayers to file false tax returns and fraudulently claim refunds.
The FBI explains that over 1,000 complaints were received by the FBI's Internet Crime Complaint Center regarding identity theft in connection with tax returns within the past year, showing a 26% increase from the previous year.
According to the FBI, stolen refunds are often redirected by criminal actors to addresses or accounts they control, including prepaid debit cards, mail drops, bank accounts, and/or third-party accounts.
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The Internal Revenue Service (IRS) recommends that residents establish an Identity Protection Personal Identification Number (IP PIN), a six-digit number given to taxpayers to help prevent the abuse of taxpayers' Social Security numbers on fraudulent federal income tax returns.
Once enrolled, the FBI says a new IP PIN will be made each year, and enrollment in the IP PIN program starts by making an online account.
If a taxpayer is a victim of tax identity theft, the IRS would automatically enroll them into the IP PIN program.
The FBI asks taxpayers who believe they were victims of identity theft to report the incident to the FBI IC3 online.