TransUnion Identifies Increased Risk for Tax Fraud Linked to 970 Data Breaches in 2024

Core Insights - The analysis by TransUnion indicates an elevated risk of tax refund theft in 2025, with 970 data breaches reported in 2024 that compromised personally identifiable information (PII) necessary for tax fraud [1][2] - A total of 640 million consumer records were exposed in 2024, with full Social Security numbers being exposed in 71% of breaches in the first half of 2024, a significant increase from 57% in 2023 [2] Government Agencies - Government agencies, including the IRS, are urged to be vigilant against fraudsters who may impersonate victims or validate stolen identity information through call centers and online portals [3][4] - The implementation of identity verification and document authentication technologies is recommended to detect impersonators, especially those using AI-generated credentials [4][5] - Agencies should consider using branded calling tools to proactively notify taxpayers at risk of fraud, as 62% of consumers are unlikely to answer calls from unrecognized numbers [5] Financial Institutions - Banks and financial institutions are advised to verify that payees match account owners to prevent fraudulent tax return claims [6] - Institutions should scrutinize new deposit account openings for potential fraud and protect existing accounts from takeovers [7] Consumer Protection - Consumers are encouraged to monitor their bank account activity and credit history, especially around the time their tax refund is due, to detect any unauthorized activity [8] - Utilizing credit monitoring services can help consumers identify if fraudsters have opened new accounts in their name [8]