TurboTax Class Action: Criminals Allowed to Steal Tax Refunds

TurboTax Class Actions are being filed against Intuit, Inc., alleging that the software maker wrongfully allowed third parties to access user data to file fraudulent tax returns. An unknown number of users were affected by the data breach, which caused Intuit to halt the filing of all returns for a period of time in February 2015. Affected users allege that they suffered charges from Intuit for the fraudulently filed returns, a delay in receiving their legitimate tax returns, and ongoing costs for credit monitoring due to their increased vulnerability to future identity theft.

If you are a TurboTax user who was the victim of a fraudulently filed tax return, contact Attorney Group today for more information. You may be eligible for monetary compensation as a part of a Turbo Tax Class Action or an individually filed lawsuit. We offer free, no obligation consultations, and if you have a case we can connect you with an affiliated attorney who can assist you through the legal process. Your time to pursue a claim is limited, so contact us today.

Criminals File Fraudulent Tax Returns, Steal Refunds

According to news reports and Turbo Tax class action lawsuits, criminals were able to obtain TurboTax user data, including social security numbers, birth dates, residence addresses, email addresses, bank account numbers, and other financial data. This information was then used to file fraudulent tax returns with the stolen user data, allowing the criminals to essentially steal the user’s tax refund. Reportedly, as many as 40% of the fraudulent tax returns filed using TurboTax came from stolen user data.

According to a Los Angeles Times article reporting on the incident:

The Internal Revenue Service paid an estimated $5.2 billion in tax refunds obtained from identity theft in 2013, according to the Government Accountability Office. The IRS prevented an additional $24.2 billion in fraudulent transfers that year, the report said.

Complaint: Lax Cyber Security Measures

According to TurboTax class action lawsuits, Intuit failed to implement sufficiently strict cyber-security measures despite the rise in large-scale data breaches in recent years. Despite an alleged promise to “place the highest importance on respecting and protecting the privacy” of its customers, the software maker is alleged to have failed to take commercially reasonable measures to protect identity theft by preventing cybercriminals from filing fraudulent tax returns.

Complaints further allege that TurboTax failed to implement a two-step authentication process until after the alleged data breach, despite calls from security experts to implement the enhanced security measure years before the breach.

Whistleblower: Security Measures Not Taken Due to Market Share Concerns

According to a Washington Post article, a whistleblower complaint filed with the Securities and Exchange Commission “alleges Intuit chose not to take needed security measures because executives worried those actions would cut into the company’s market share.” One former Intuit employee who filed a complaint was quoted as saying:

“One of the main reasons that I left was that Intuit was seemingly unwilling to implement even the most basic safeguards to protect their users that we were recommending…. Something like preventing multiple people from using the same Social Security number is extremely simple to do and that would stop a ton of fraud dead in its tracks, and that was one of many recommendations that we made that they would not implement.”

The Time to Pursue a Claim is Limited. Contact Us Today.

If you are a TurboTax user who had a fraudulent tax return filed using your personal information, contact Attorney Group for more information. We offer free and confidential consultations, and if you have a case we can connect you with an affiliated attorney who can assist you throughout the legal process. The time to pursue a claim is limited, so contact us today.