TIGTA is the abbreviation for Treasury Inspector General for Tax Administration, the officer that tracks down fraud schemes by taxpayers and, increasingly, on taxpayers. The current TIGTA have been making progress in impeding the efforts of IRS impersonators. Inspector General, J. Russell George, said, “Perpetrators used to be able to get a victim every 40-50 calls, now they must make 300-400 attempts to claim a victim.”
Still, George’s boss, Secretary of Treasury Jack Lew, assessed that the programs that combat cybercrime on taxpayers is “severely underfunded.”
This is a serious problem because cybercriminals, like all criminals, try different methods when a previously effective method is closed off. Most of these methods almost always include a cybercriminal getting identification information to file a bogus tax return in order to get a refund. The average refund is about $3,000, so, it only takes about 34 to get over $100,000. There are about 60 working days between the end of January, when W-2’s are sent to employees and tax day, so, if a fraudster were to treat this like work, the booty could be about $180,000 when the success rate is just one per day, pretty good work for working less than a quarter of the year.
Over nine in ten taxfilers file online, which adds other methods of identity theft that could result in more than just a stolen tax refund.
President Obama is proud of having reduced the deficit by reducing Federal spending, but a reduction in the enforcement of such a lucractive crime is a poor way to reduce the deficit. He has reduced the decifit in other bad ways, but that’s not to do with cybercrime and IRS. For now, he and his Secretary of the Treasury disagree on how much is needed to fund the cybersecurity of the IRS.
Marcus Maltempo is a Certified Anti-Money Laundering Specialist and a Certified Fraud Examiner with more than a decade of experience helping banks, law firms and clients manage investigations and regulatory responses.