Texas Republic Bank is committed to providing you with resources and information to prevent or mitigate fraud. Please read this important information and feel free to contact your local TXRB relationship manager if you have any further questions.
The Internal Revenue Service is alerting financial institutions to the proper handling of erroneous federal tax refunds resulting from an emerging fraud scheme that could affect thousands of people across the country.
Financial institutions using external leads process should include the reason the refund is being returned, i.e. refund is not the taxpayer’s. More information is available at Publication 5033, IRS External Leads Program: Fact Sheet on Submitting Leads.
The IRS identified a scam in which cybercriminals have stolen client data from tax professionals and filed fraudulent refunds using real taxpayer information, including bank account and routing information for Direct Deposit.
The fraudster then contacts the taxpayer posing as an employee of a debt collection agency working on behalf of the IRS. They ask the taxpayer to take certain steps to return the refund, but actually the refund goes to the criminals.
IRS guidance to taxpayers who are victims asks them to contact the Automated Clearing House (ACH) department of the bank/financial institution where the Direct Deposit was received and have them return the refund to the IRS. The IRS also asks the taxpayers to call the agency toll-free at (800) 829-1040 (individual) or (800) 829-4933 (business) to explain why the Direct Deposit is being returned.
To help the government fight financial crime, federal regulation requires certain financial institutions obtain, verify, and record information about the beneficial owners of legal entity customers. Requiring the disclosure of key individuals who own or control a legal entity (i.e., the beneficial owners) helps law enforcement investigate and prosecute these crimes. Click here. to learn more.
Phishing is an email scam involving fraudsters who pretend to be a legitimate business. Hiding behind the anonymity of the internet, they send “official looking” emails or set up bogus websites to trick you into divulging your account numbers, passwords, social security numbers, and other sensitive data. Learn more.
New technology comes out every day. Unfortunately, fraudsters are quick to take advantage of that technology and YOU! Use emerging technologies…but protect yourself from theft, fraud, and scams. Find more.
Corporate Account Takeover is a fast growing electronic crime where thieves typically use some form of Malware (malicious software) to obtain login credentials to the Corporate Online Banking accounts and fraudulently transfer funds from the Accounts. Read more.