NJ Tightens Security For ANCHOR Rebates Amid Fraud: What To Know

NEW JERSEY — New Jersey officials stopped close to a million fraudulent attempts to get money from the ANCHOR property tax relief program last year, officials said.

The number of fake applications in 2023 was a "significant increase" over 2022, according to documents from the New Jersey Office of the Treasury — spokesperson Danielle Currie said the state identified more than 100,000 attempts during the 2022 round of ANCHOR applications, compared to over 900,000 last year.

During the current ANCHOR season, the Division of Taxation "continues to carefully assess every application that is submitted, cross-referencing it with existing tax and property records to authenticate the application," Currie said.

And as more and more New Jersey homeowners and renters are seeking payments from the $2.28 billion program, officials have put new security measures in place to try and prevent fake applications. The state partnered with ID.me, a network that allows people to provide proof of their identity virtually, as "part of ongoing efforts to prevent fraud and safeguard taxpayer dollars," Currie said.

This means that some residents will have to go through some extra verification steps before getting up to $1,750 back in their bank accounts for this year's round of ANCHOR (which is based on tax information from 2021).

The following residents will need to verify their identity through ID.me: First-time applicants, those who are looking for their ANCHOR ID and PIN, those who did not receive an ANCHOR benefit confirmation letter or application mailer, and those who no longer have their letter/mailer and the accompanying information.

These taxpayers will be prompted to verify their identity online using the camera on their phone, tablet, or computer, and have a copy of their Social Security number and common identity verification documents.

Residents can use the ID.me portal to verify their identity by uploading their documentation and then taking a selfie to match the picture, meet virtually with an ID.me employee to walk them through the process, or visit one of the Division of Taxation’s Regional Information Centers with proof of ID, officials said.

"While not all taxpayers will need to use ID.me, those who do must complete this verification before applying for the ANCHOR benefit," the Division said.

As of Thursday, Currie said more than 100,000 taxpayers have successfully used ID.me to file their ANCHOR applications.

Meanwhile, the Division of Taxation is continuing to warn residents about scammers who might send texts and emails seeking to steal their personal information.

"We will never ask for personal information via text about your ANCHOR benefit," officials said. "Always contact us directly before sharing personal details in response to messages claiming to be about the ANCHOR program."

The ANCHOR program (standing for Affordable New Jersey Communities for Homeowners and Renters) is in its third year, and replaced the state's Homestead relief program —which reached about 500,000 residents annually between 2020 and 2022.

About 2 million people are expected to receive an ANCHOR benefit this year, compared to 1.8 million last year and 1.6 million in 2022, according to a report from the Department of the Treasury published by the state legislature. The program paid out more than $2 billion last year, officials said.

The state has also increased funding in the budget for ANCHOR, which now sits at $2.28 billion.

You can find more information about the ANCHOR program at anchor.nj.gov. Applicants may also call the ANCHOR hotline at (609) 826-4282 or 1-888-238-1233, or get in-person assistance at a Regional Information Center.

Related articles —

• Do I Qualify For Automatic ANCHOR Payment In NJ? 5 Things To Know
• How To Get Your ANCHOR Rebate If You Didn’t Receive A Mailer