Tax Refund Fraud 2023

From data breaches to sophisticated social engineering schemes, fraudsters have a lot of accessible consumer and business data to successfully perpetrate tax refund fraud. We anticipate another year of challenges for RDFIs presented with investigating and handling these entries. 

In this interactive session, attendees will prepare for handling suspect transactions and answers questions like:
• What are the indicators of possible tax refund fraud? 
• When do suspect returns qualify as suspicious activity under AML?
• If we identify multiple, suspect returns on an account, how do we handle the entries?
• If we suspect tax refund fraud, does the institution have any liability?
• Are there compliance requirements beyond ACH related to tax refund fraud?

In this session attendees will:
• Analyze current trends of refund fraud.
• Discuss when an RDFI has liability or exposure to liability.
• Record sound business practices to increase detection capabilities internally.
• Document appropriate responses to suspect returns.