25 Suspects Busted in Massive Identity Theft Tax Scam

GRIMY TIMES EXCLUSIVE: Federal authorities have announced the filing of federal charges against 25 defendants in a massive identity theft and tax refund fraud scheme that has plagued South Florida. The suspects, accused of participating in 19 separate schemes, are alleged to have stolen thousands of identities and filed millions of dollars worth of fraudulent tax returns.

According to the Department of Justice’s United States Attorney for the Southern District of Florida, Wifredo A. Ferrer, these cases underscore the joint commitment by federal and local law enforcement agencies to crack down on stolen identity refund fraud (SIRF). ‘The number of stolen identities and the dollar amount of the tax fraud involved in these cases is staggering,’ said Ferrer.

Florida has long been a hotbed for identity theft, with Miami leading the nation in complaints per capita. The state’s identity theft rate of 192.9 complaints per 100,000 residents is overshadowed by Miami’s alarming rate of 340.4 complaints per 100,000 residents.

In response to this epidemic, the U.S. Attorney’s Office for the Southern District of Florida established the South Florida Identity Theft Tax Fraud Strike Force in August 2012. Since its inception, the Strike Force has charged 296 defendants responsible for approximately $485.5 million in intended stolen identity refund fraud loss and over $106 million in actual SIRF fraud loss.

U.S. Attorney’s Office and the IRS have taken additional steps to combat this issue by revoking so-called ‘electronic filing identity numbers’ (EFIN) used by fraudsters to file fraudulent tax returns. Prior to these revocations, over 166,495 fraudulent tax refund claims were filed using these EFIN numbers.

IRS Special Agent in Charge José A. Gonzalez emphasized the importance of vigilance: ‘While we have a talented and effective team dedicated to fighting this fraud, we need everyone – both taxpayers and institutions – to remain vigilant in safeguarding personal identifying information.’ The authorities are urging the public to protect their personal data as if it were a trade secret.

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