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Wednesday, April 25, 2012

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I really think that the fraudsters are confident that they won't get caught because there is so much fraud and not very much energy spent on catching them. They are just playing a numbers game figuring it's worth it for a 10% chance they will get caught.

I had an unfortunate discovery when I went to pay my taxes. When I e-filed an error came back which said that a return had already been filed with my ss# and name.

After waiting for an hour and a half on hold with the IRS they told me that I was the victim of identity theft. Evidently, the criminals take the ss# and name of someone and file for a big refund with totally made up numbers in early January (before I had my W2).

I thought that was pretty gutsy... stealing from the IRS.

That is pretty gutsy!

Apparently, the number on method for stealing credit card numbers at present works like this:

Chain restaurants often set up their card readers using the same password. A hacker sitting anywhere in the world who finds the address of one of those card readers can fire some oft-used passwords at them until they get in, and then install software that helps them collect credit card information without having to be on the same continent. Apparently, thieves sell bundles of numbers.

The only prosecutions I see are much more localized--- someone local stealing from someone local. I've no idea how much pursuit of the more organized crime type operations there is. I'd hope they'd at least go after the low hanging fruit, like the person who paid for Catholic school.

A hacker sitting anywhere in the world who finds the address of one of those card readers can fire some oft-used passwords at them until they get in, and then install software that helps them collect credit card information without having to be on the same continent.

Crafty devils.

Pretty gutsy stealing from the IRS.

Not really. As a former (short term) IRS employee I was recently astounded to learn how simple those "Make It Rain Parties" really are, to such an extent it has become popular with inner city minority teens - particularly in Florida.

The inept IRS has determined expedient refunds for millions somehow justifies the system in place which facilitates SIX BILLION in refund fraud. My superficial understanding of the process........

1) Establish a relationship with someone who has access to names, address and SS number; car dealer applications, hospital records, etc

2) Purchase a debit card (green dot) at Target or Walmart

3) File a "blind return" requesting the IRS transfer return due it to debit card.

4) Cash out debit card ASAP to reduce the balance to zero, typically by purchasing gift cards

I don't quite understand how the criminals can request what I have described as a "blind return" since they have NO idea the amount due the taxpayer. It's been a few decades since my association with the IRS. Apparently the IRS determines the amount due from information available. Two of the law enforcement individuals interviewed on the program I caught had $6,000 and $9,000 missing due to refund fraud.

Of course it would be a simple method to prevent this type of fraud, but the empty headed IRS VIP I saw interviewed concerning this monumental fraud was the typical bureaucrat. She volunteered plenty of excuses but few answers on their plans to halt the fraud.

And by the way, the penalties for tax refund fraud are minimal, assuming you get caught, which is unlikey. Why? The IRS doesn't consider $5,000 or $8,000 worthy of an intensive effort.

But the same IRS clowns who shrug their shoulders at refund fraud losses will soon be clamping down on eBay sellers for their piece of the action.

get this, they even paid Catholic school tuition in Bridgeport/Fairfield CT

Somewhere in Connecticut, there is a terribly desperate, terribly poor parent, who will do absolutely anything, even hard time, to keep their kid in the school they feel that kid needs.

It is to weep.

Sid,

What a crock of elitist, liberal horseshit! Do you always scold crime victims and put criminals on pedestals? How do you know that this criminal is poor and terribly desperate? People who aren't desperate steal all the time. They even steal everyday necessities when they aren't desperate.

Do you tell rape victims to think about the poor, desperate, sexually deprived man who would do anything to get laid?

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