Beware of IRS Refund Check Fraud: Protect Yourself by Choosing Electronic Distribution

Taxpayers Beware: IRS Refund Check Fraud on the Rise

As tax season approaches, taxpayers are being warned about the increasing threat of IRS refund check fraud. With refund checks being a prime target for scammers, individuals who choose to have their refunds delivered by mail are at risk of falling victim to this type of fraud.

According to Marcum’s Chairman & CEO, Jeffrey Weiner, check fraud in the U.S. reached a staggering $21 billion in losses in 2023. This alarming statistic highlights the seriousness of the issue and the need for taxpayers to be vigilant.

One common tactic used by fraudsters is to steal IRS envelopes from mailboxes and create fake checks that mimic authentic U.S. Treasury checks. These bogus checks are then sent to unsuspecting taxpayers who may mistake them for the real thing and deposit them into their bank accounts.

Once the fraudulent checks are deposited, scammers may contact the taxpayer posing as IRS representatives and demand a refund. These refunds are then directed to accounts controlled by the fraudsters, leading to further financial losses for the victims.

To avoid falling victim to refund check fraud, taxpayers are advised to opt for electronic distribution of their refunds instead of receiving them by mail. By choosing direct deposit, individuals can reduce the risk of their refund checks being intercepted and stolen by scammers.

Additionally, taxpayers should remain vigilant and report any suspicious activity or unexpected mail claiming to be from the IRS to the appropriate authorities. By taking these precautions, individuals can protect themselves from falling prey to refund check fraud and ensure that their hard-earned money remains safe and secure.