AZ Department Of Revenue Reveals 3 Identity Theft Schemes

ARIZONA — Fraudsters using stolen taxpayer identities, beware: The Arizona Department of Revenue is on the lookout for income tax-related identity theft, and it recently identified three such schemes.

While identity theft and income tax fraud continue to evolve, the revenue department is updating its fraud detection methods as well in combating threats. The department’s new countermeasures include implementing artificial intelligence systems and advanced analytics with machine learning, according to a spokesperson. This identity theft prevention system has thwarted fraudulent income tax refunds totaling more than $120 million since 2015, the department said.

Three tax-related identity theft schemes the department has intercepted are:

• William Scheme: During three months, more than 600 fraudulent tax returns were filed, requesting a total of $300,000. All the bogus returns were based on the stolen identities of dead men named William. The returns all originated from Florida.
• Miami Scheme: Identity thieves submitted 850 fraudulent returns requesting a total of $500,000 in fake tax refunds between 2015 and 2019. The returns all had a Miami, Florida, postmark and similar handwriting patterns. Most of the fraudulent returns were based on identities of persons and showed fake Arizona wages and addresses.
• Ides of March: In February 2019, tax identity thieves submitted false tax returns electronically. After denial of those refunds, the thieves then submitted paper tax returns in March. None of the taxpayers whose identities were stolen worked or lived in Arizona. The department detected 18 fraudulent tax returns totaling $17,000 by linking the paper and electronic submissions’ similar characteristics.

In view of past, present and undoubtedly future identity theft schemes, the revenue department shares some tips to help prevent victimization:

• Leave any identification bearing your Social Security number at home.
• If someone requests your Social Security number, ask them why — because providing it might not be necessary.
• Keep confidential, personal information in a secure location.
• Be extra careful when discarding confidential or personal information.
• Use anti-virus software on smartphones, personal computers and other devices.
• Don’t ever share your passwords, and use strong passwords.
• Never share your personal information over email unless it’s encrypted. Don’t share personal information via text message, social media or phone, unless you were the one to initiate the call.

If you suspect you’re a victim of tax-related identity theft, call the Arizona Department of Revenue Identity Theft Call Center at 602-716-6300 or 800-352-4090 (toll free).