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Cyber Risks · Krebs on Security

Turbo Tax’s Anti-Fraud Efforts Under Scrutiny

Summary: Two former Intuit security employees allege the company knowingly processed state and federal refunds filed by cybercriminals, with former security business partner Robert Lee saying Intuit refused to block re-use of Social Security numbers across accounts or limit returns per account, and that management forbade flagging or shutting down millions of accounts used only for fraud. Former principal security engineer Shane MacDougall resigned and filed an SEC whistleblower complaint, submitting a recording of TurboTax deputy general counsel Michael Lyons describing fraudsters shifting to H&R Block, TaxSlayer and TaxAct as 'squeezing a balloon,' while Intuit says it leads the industry in suspicious-activity reporting and makes nothing on returns the IRS rejects.

What you should know: The GAO figures in the article put the stakes in plain terms: the IRS paid $5.8 billion in fraudulent refunds in 2013 even after preventing $24.2 billion, and the FTC logged 332,646 identity theft complaints in 2014 with tax-related complaints the largest share - so the question of whether a major filer flags fraud or protects its numbers carries a multi-billion-dollar price tag.

Read the original at Krebs on Security ↗

Topics
Identity & Access Management
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