The Government Accountability Office reported that the IRS delivered fraudulent refunds during 2013 amounting to $5.8 billion. This is mostly due to the loopholes in the system being used by IRS. It is alarming that the agency’s security practices are not strong enough to deter fraudulent activities such as the authentication of identity with passwords and security questions. In addition, IRS does not employ any tracking devices that can prevent the filing of multiple tax returns using the same IP address. As a result, cyber criminals can file several fraudulent tax returns in one day, and this illegal practice worries many taxpayers.
Source: Online Athens