AZDOR Intercepts More Fraudulent Refunds in FY 2013

July 14, 2014

The Arizona Department of Revenue stopped more than $74 million in fraudulent refunds from being sent out in fiscal year 2013. That’s a $42 million increase from the year before.

The increase is part of a larger trend in Arizona and the country as a whole. In 2009, the state intercepted about $2 million of fraudulent refunds, a figure that has grown dramatically over the past five years.

Anthony Forschino, the assistant director of the Arizona Department of Revenue, said the advent of electronic filing is a large factor behind the issue.

"I mean, we love electronic filing because that’s how we’ve been doing it,"Forschino said. "There are less errors, processing is done better. It’s quicker. It’s the best way to file your return. However, it’s so much easier for someone to sit somewhere and just hit as many fraudulent returns as they can by e-filing."

Forschino added that some of the increase can be attributed to the development of more effective detection and interception techniques.