ST. JOHN’S, Newfoundland–Verafin, a provider of fraud detection and anti-money laundering collaboration (FRAMLx) software, has announced a new analytic to help U.S. credit unions detect suspicious tax refunds.
Despite the Internal Revenue Service (IRS) implementing numerous safeguards to prevent identity theft and related fraudulent refunds, vulnerabilities still permeate the tax preparation and filing process, the company said.
Verafin said it worked closely with financial institutions across the country to develop and enhance this new tax fraud analytic.
“The result is a powerful alert type that warns investigators at FIs when suspicious Federal and State tax refunds are deposited into a customer’s account, helping both banks and credit unions successfully uncover potentially suspicious tax refund activity,” Verafin said.