Couple Exploits Vulnerability With IRS Filing System, Steals $1M, Goes to Jail

Anthony and Sonia Alika recently found out that the Internal Revenue Service is not an organization to mess with. Having been busted for filing fraudulent tax returns through the often-exploited Get Transcript site managed by the IRS, the couple will spend some time in the slammer in addition to paying restitution.

Mr. Alika is set to serve 80 months in prison followed by three years of supervision upon release, and must pay $1,963,251.75 in restitution for conspiracy to commit money laundering. Mrs. Alika must serve 21 months in jail, followed by three years of supervision and an IRS restitution of $245,790.08 for structuring cash withdrawals to avoid the required bank reporting. Both of them pled guilty to their respective crimes.

The couple laundered $1 million of funds stolen from the U.S. Treasury by filing fraudulent forms. In particular, they filed fraudulent income tax returns using data stolen from the Get Transcript service. Get Transcript was originally created to allow taxpayers to review their past returns, but the Alikas used it to obtain data to steal from the IRS.

The Alikas and their co-conspirators would purchase prepaid debit cards and register them to the identities they had stolen. They would then file tax returns using the fake identities and receive the refunds on the prepaid cards. The cards were then used to purchase money orders and deposit money into bank accounts, which was then withdrawn in small amounts to avoid suspicion and bank reporting.

This wasn't the first time Get Transcript had been utilized for fraudulent activity. In May 2015, 100,000 stolen tax accounts  were used to defraud the IRS of $50 million. That’s a ton of cash lost due to lax authentication requirements. In response to this case, the United States Department of Justice (DOJ) issued some recommended best practices for keepoing personal information and accounts safe and secure.

File Your Taxes Early
If you’ve already filed your tax return, refund criminals like the Alikas can’t file using your identity. The longer a return goes without being filed, the more time you’re giving hackers to file a fraudulent return using your stolen identity.

Use Strong Usernames and Passwords
This tip can be applied to all online accounts--especially those that contain sensitive information, like your tax return. Use passwords and usernames that are unique to your person; if someone else were to obtain your credentials, or if you share them, the chances of them getting stolen multiply. Make sure you don't carelessly come up with a password that is easy to guess. As we noted in a post last week, replacing a strong password with a weaker one (just for the sake of changing a password) can make your account more vulnerable.

BONUS TIP: Randomized strings of upper and lower-case letters, numbers, and (if permitted) symbols are the most secure option when selecting a password.

For more information on how to keep your computer systems and your identity safe, reach out to us at 586 258-0650 .

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