Experian announced the launch of the Tax Return Analysis Platform(SM) (TRAP) — a new offering that will enable federal and state revenue offices to detect fraudulent tax returns that have been submitted using stolen identity credentials. This innovative tool goes beyond traditional identity verification, offering device intelligence and risk assessment and the use of proprietary data and analytics to check for fraud, potentially saving revenue agencies millions of dollars.
According to a recent report from the Treasury Inspector General for Tax Administration (TIGTA), based on fraud it currently detects, the IRS estimates tax refund fraud totals more than $19.2 billion per fiscal year. With more than 80 percent of tax returns filed electronically that require no accompanying documents, such as W-2 forms, there is an increased potential for fraud. Additionally, any in-depth evaluation is done by revenue agencies after the refund is processed.
TRAP uses Experian’s powerful Precise ID(SM) identity authentication and fraud detection platform to analyze tax return data points and identify those with the highest potential fraud risk. TRAP can combine Precise ID with device intelligence to determine if a user’s device is or has been involved in fraudulent activity. TRAP also can combine Precise ID with proprietary data to determine if those same stolen credentials are already being used in other fraudulent applications. The tool provides fraud scores that allow the revenue office to further authenticate identified returns through an automated process rather than manually.
Precise ID is Federal Identity, Credential, and Access Management (FICAM) –recognized under the National Institute of Standards and Technology (NIST) and trusted by numerous government and healthcare agencies to authenticate consumers prior to their access to sensitive
Source: Wall Street Journal