Verafin develops tax fraud analytic for US banks
The software group is launching the product as the US Internal revenue Service reports a sharp rise in phishing and malware scams targeting taxpayer information.
The software group is launching the product as the US Internal revenue Service reports a sharp rise in phishing and malware scams targeting taxpayer information.
Fraud detection and anti-money laundering collaboration software provider Verafin Inc has launched a tax fraud analytic to help US banks and credit unions detect online vulnerabilities and email fraud scams that can result in millions of dollars’ worth of fraudulent tax refunds.
Despite the Internal Revenue Service (IRS) implementing numerous safeguards to prevent identity theft and related fraudulent refunds, vulnerabilities still permeate the tax preparation and filing process, says Verafin. Early in the tax season, the IRS warned consumers of a 400% increase in phishing and malware scams targeting taxpayer information.
Verafin added that it worked closely with US financial institutions (FIs) to develop and enhance its new tax fraud analytic. The result is “a powerful alert type that warns investigators at FIs when suspicious Federal and State tax refunds are deposited into a customer’s account, helping both banks and credit unions successfully uncover potentially suspicious tax refund activity.”