What is tax refund fraud?
Tax refund fraud happens when someone files a fake tax return using your personal information (like your Social Security number) to get a tax refund from the IRS or a state tax department. Tax identity theft is the most common form of identity theft reported to the Federal Trade Commission.
A Three-Pronged Approach to Fighting Tax Refund Fraud
Tax refund fraud has reached pandemic levels across the nation. For many years, the SCDOR fraud detection unit has consisted of a dedicated team focused on identifying fraud, as well as technology and systems to identify inconsistencies and potential fraud. As fraudsters continue to change and evolve, we need to do the same to keep up. Our approach to fighting fraud includes:
Enhanced use of
Technology: The SCDOR is utilizing predictive analytics to detect fraud.
Partnerships: Our partners in the fight against fraud include payroll industry leaders, the IRS, tax preparer industry leaders, and other states.
Public Information: Key stakeholders in this effort are South Carolina taxpayers. Taxpayers can help fight tax fraud by becoming more vigilant in protecting their own private and personal information- making it harder for the fraudsters to steal. Check out these
FAQs for more information.
Join the National Fight Against Fraud: Tips for Protecting Your Information
The SCDOR has teamed with the IRS, tax preparers and software developers, and tax agencies from other states to help you protect your private information. "Taxes. Security. Together." is a national effort to inform taxpayers on the fight against fraud.
Video from the 2016 Filing Season
In 2016, the SCDOR launched an aggressive anti-fraud campaign and has continued efforts since. Check out this video for more background information.