Using stolen data, cyber-criminals have accesses past tax returns for more than 100,000 people. How did they do it? They gained access to IRS records through an application on the IRS website. The IRS sent the criminals about $50 million in refunds before it detected the fraud.
Cybercrime related to falsified tax claims is a growing challenge for the IRS. In 2013, the IRS paid $5.8 billion in fraudulent refunds.