Tax and Government Fraud Cases Spiked 68% in 2022

Northbrook, Ill. – March 30, 2023 – Taxpayers may get lower refunds this year, but that’s not stopping scammers from trying to steal them.

Allstate Identity Protection is reporting a 68% spike in tax and government fraud cases in 2022 over 2021. In fact, tax refund fraud was the third most reported fraud type in 2022, according to the AIP Identity Fraud in Focus report.

“We get a lot of calls about identity theft every year during tax season,” said Dustin Hofstein, Chief Service Officer at Allstate Identity Protection. “Refunds are stolen when a scammer uses your Social Security number to file a tax return. Unfortunately, people often don’t know they’re a victim of tax fraud until they file their taxes, which is why we advise filing as early as possible.”

The IRS flagged $5.7 billion in tax fraud in 2022, and there were nearly 8 million reports of suspicious tax-season activities.

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

5 warning signs of tax identity theft

You file your taxes and they’re declined. This is a sign a scammer has already used your Social Security number to file a phony tax return. As a result, the IRS can’t accept your electronic or paper return.

IRS records don’t have your correct employment history or wages.

The IRS notifies you about an additional tax or refund offset you weren’t expecting.

You get a letter from the IRS saying your online account has been deactivated,

You’ve been assigned an employer identification number you didn’t request.