Oregon’s Department of Revenue says it prevented nearly $2 billion in tax refund fraud over five years

SALEM, Ore. (KTVZ) - The Oregon Department of Revenue stopped nearly $2 billion in tax refund fraud over the past five years, Governor Tina Kotek said Tuesday.

In 2024 alone, partly as a result of the outsized kicker that year, the department prevented more than $1.4 billion in attempted fraud, such as breaches of tax-preparer data, tax-related identity theft, and intentionally false claims for refunds.

“Detecting, deterring, and preventing fraud protects Oregonians who play by the rules,” Kotek said. “Every dollar of fraud that DOR prevents is a dollar we can use to pay for schools, make Oregon healthier, keep our communities safe, and help meet our housing needs.”

DOR’s Refund Protection unit is responsible for identifying breaches of tax-preparer data, tax-related identity theft, and intentionally false claims for refunds. Staff are trained in the use of data-driven review tools to recognize the latest fraud patterns as a part of their routine work and respond quickly to suspicious activity.

"This isn’t a single parent who made a mistake when filling out their tax forms. It’s criminals running sophisticated scams," said DOR Director David Gerstenfeld. “This $2 billion in stopped fraud is the result of targeted efforts to stop large-scale bad actors who send in thousands of fraudulent returns in attempts to steal tens, if not hundreds, of thousands in taxpayer dollars."

Fraud can take many forms, and constant vigilance is the key to preventing it. Oregon taxpayers can do their part by protecting themselves from identity theft and data breaches.

Scammers may pose as IRS or DOR employees to deceive taxpayers into sending money or sharing personal information. Common scams include texts, emails, calls, fake websites, and fraudulent mail. 

To protect yourself:  

• Do not reply to or click links in suspicious messages. 
• Do not download attachments.
• Communicate with DOR securely through Revenue Online.
• If you are unsure, contact DOR directly to verify the request.

DOR’s Protecting Your Identity webpage includes important links to identity theft prevention resources and information about recognizing and reporting other types of tax fraud. You can report suspected tax fraud through Revenue Online.