This tax year of 2014 has been one of the worst years for tax fraud in history. It may be due to the huge number of identity thieves getting the information of thousands of Americans. One company, in particular, turboTax, had been breached and did not warn the public right away as to how badly they had been affected. This has also started a batch of legal problems for the company after customers began filing TurboTax lawsuits.
Damage from the TurboTax data breach
Many customers who had used TurboTax for the 2013 tax year, had their information stolen and then reused to fraudulently file for the 2014 taxes. Some of the victims were able to log in and see if the thief had indeed used their credentials and previous history to file fake tax returns and have them sent to their name. Some of the thieves would sign themselves onto the check at the end as the cosigner, so the check would be made out to their name.
How the damage has been managed
TurboTax caught some of the fake checks going out, but that did not stop all the problems. Some of the stopped checks were to pay for the fee incurred as a result of using their E-filing and online tax service. People were sent bills for services they never asked for or received. There are reports that even some of the previous customers are being harassed to prove it wasn’t them and that they deserve a refund.
Another nightmare which has happened is that the identity thieves are also opening up fake accounts using the information they stole, and also getting fake tax returns sent in their name. With the millions of people that have been hit with the insurance identity thefts, these names are being cycled through TurboTax until they find a match that works.
What you should do if you’ve been affected by the TurboTax data breach
If you have been the victim of identity theft, and TurboTax was used to either create a fake account, or your information was stolen, you may be able to join a TurboTax class action lawsuit. You should speak to a law firm who handles data breaches to see if you qualify.