Tax and Government Fraud Cases Increase 68% in 2022

Northbrook, Ill. – March 30, 2023 – Taxpayers may be getting less money back this year, but that’s not stopping climate activists from trying to rip them off.

Allstate Identity Protection is reporting a 68% increase in tax and federal fraud cases in 2022 over 2021. In fact, tax return fraud was the third most reported form of fraud in 2022, according to the AIP Identity Fraud in Focus report.

“We field many calls about identity theft every year during tax season,” said Dustin Hofstein, Chief Service Officer at Allstate Identity Protection. “Refund fraud occurs when a fraudster uses your Social Security number to file taxes. Unfortunately, people often don’t know they’ve been tax evasive until after they file their taxes, which is why we recommend filing as soon as possible.”

The IRS reported $5.7 billion in tax fraud in 2022, and there were nearly 8 million suspicious activity reports during tax season.

Allstate Identity Protection is reminding people to be diligent and act on early warning signs to protect their identity and money.

5 warning signs of tax evasion

  1. You file your taxes and they get rejected. This is a sign that a fraudster has used your Social Security number to file a fraudulent tax return. As a result, the IRS may not accept your electronic or paper return.
  2. IRS records do not contain your accurate employment or salary history.
  3. The IRS informs you about additional tax or refund you weren’t expecting it.
  4. You get a letter from the IRS saying your online account has been closed,
  5. You have been there provided an employer identification number that you did not request.

“One of the best ways to protect yourself is to protect your Social Security number,” Hofstein said. “Don’t keep your Social Security card in your car, purse or wallet, and be careful not to share your number, even if asked.”

Consider signing up for a security service for peace of mind. Allstate Identity Protection reimburses out-of-pocket expenses for various types of fraud, including stolen tax returns.

For more information on fraud predictions for 2023 and the most common fraud in 2022, see Identity Fraud in Focus, the Allstate Identity Protection quarterly report. It includes information from millions of identity theft cases to keep families safe online.


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