June 21, 2012 --
By Oregon Tax News,
Identity thieves are using deceased people’s SSN and use it to claim him as a dependent. Then have the IRS send the ridiculously inflated refund to your prepaid debit card. Thieves spend the refund, and pull the same trick next year. The scam works when the victim died fairly recently. If the victim is still alive, the thief files before he does.
Businessweek reported that five-year-old Benny Waters, who died of a brain tumor in September 2010. When his parents tried to file their tax return last year, it was rejected because someone else had already claimed Benny as a dependent. As Benny’s parents said, the experience was akin to having their son stolen. Yet they are far from the only victims. According to IRS, more than 490,000 people have been victimized by this new fraud, and the overall cost to taxpayers has been more than ten billion.
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