The state of Georgia has enlisted the help of LexisNexis to start a pilot program that utilizes identity verification and authentication tools to combatting tax fraud, reports Accounting Today.
The pilot program launched this past January using LexisNexis’ Tax Refund Investigative Solution, which employs identity-based filters to screen tax refund requests against LexisNexis’ database of identity records. The results found that two percent of all tax returns filed were potentially fraudulent and prevented millions of dollars being lost to fraudulent refunds in 2011.
Post-pilot, the state has decided to award LexisNexis Risk Solutions a contract to continue its efforts in fighting this problem.
Georgia’s effort comes at a time when the IRS is integrating identity theft filters into its system to address the same issue.
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