Tax Refund and Benefit Fraud Using Your Identity
Criminals use stolen identities to claim tax refunds and benefits. Warning signs, how to report it to tax authorities, and how to protect your government accounts.
Tax and benefit systems pay out money, so criminals target them with stolen identities. They may file a tax return in your name to claim a refund, claim benefits or grants using your details, or change the bank account on your government account so your payments go to them.
Warning signs
- Your tax return is rejected because one has already been filed in your name.
- Letters about income from employers you have never worked for. See employment identity fraud.
- Notices about refunds, benefits or claims you did not make.
- Your government account shows changed bank details or address.
- Expected refunds or benefits do not arrive.
What to do
- Contact your tax authority or benefits agency using its official website or phone number, and report identity fraud.
- Secure your government portal account: change the password, turn on two-step verification, and correct bank and address details. See protecting government logins.
- Report identity theft to your national service. In the United States, IdentityTheft.gov covers tax identity theft.
- Check your credit record for other misuse. See checking your credit record.
- Keep a log of every contact and reference number. See keeping a log.
Tax refund texts and emails are a leading phishing lure. Tax authorities do not ask you to click a link to claim a refund. Log in through the official portal yourself. See tax impersonation scams.
Prevention
- Protect your tax ID or national insurance number; share it only when required.
- File returns early where you can, before a fraudster does.
- Use any extra protection your tax authority offers, such as identity protection PINs where available.
- Shred old tax documents you no longer need. See shredding documents.
Got a tax refund message? Paste it into CyberWatch AI Scan for a free check.
For the full process, see how to respond to identity fraud in our complete guide.
Frequently asked questions
How would I know someone used my identity for tax fraud?
You may find your tax return is rejected because one was already filed, receive letters about income from employers you do not know, or see refunds or claims you did not make.
Who do I contact?
Your national tax authority, through its official website or phone number. In the United States, IdentityTheft.gov and the IRS provide specific steps.
How can I prevent it?
Secure your tax and government portal logins with strong passwords and two-step verification, protect your tax ID number, and be wary of refund messages.
Sources
- What To Know About Tax Identity Theft, US Federal Trade Commission
- IdentityTheft.gov, US Federal Trade Commission
- How To Avoid a Government Impersonation Scam, US Federal Trade Commission
