Fraud Assistance & Resources.
Texas Republic Bank is committed to providing you with resources and information to prevent or mitigate fraud. Please read this important information and feel free to contact your local TXRB relationship manager if you have any further questions.
Federal Tax Refund Fraud Scheme
The Internal Revenue Service is alerting financial institutions to the proper handling of erroneous federal tax refunds resulting from an emerging fraud scheme that could affect thousands of people across the country.
Financial institutions using external leads process should include the reason the refund is being returned, i.e. refund is not the taxpayer’s. More information is available at Publication 5033, IRS External Leads Program: Fact Sheet on Submitting Leads.
The IRS identified a scam in which cybercriminals have stolen client data from tax professionals and filed fraudulent refunds using real taxpayer information, including bank account and routing information for Direct Deposit.
The fraudster then contacts the taxpayer posing as an employee of a debt collection agency working on behalf of the IRS. They ask the taxpayer to take certain steps to return the refund, but actually the refund goes to the criminals.
IRS guidance to taxpayers who are victims asks them to contact the Automated Clearing House (ACH) department of the bank/financial institution where the Direct Deposit was received and have them return the refund to the IRS. The IRS also asks the taxpayers to call the agency toll-free at (800) 829-1040 (individual) or (800) 829-4933 (business) to explain why the Direct Deposit is being returned.
Beneficial Ownership
To help the government fight financial crime, federal regulation requires certain financial institutions obtain, verify, and record information about the beneficial owners of legal entity customers. Requiring the disclosure of key individuals who own or control a legal entity (i.e., the beneficial owners) helps law enforcement investigate and prosecute these crimes. Click here. to learn more.
Tax Return Identity Theft
An identity thief uses a legitimate taxpayer’s identity to fraudulently file a tax return and claim a refund. See how.
Identity Theft
If you have been a victim of identity theft, you should take action immediately. Find out how.
Cesar
