These days it seems like everyone knows someone who has had their credit card hacked, been scammed over the phone or computer. Even the IRS is grappling with the issue of fraud and identity theft. According to the IRS, identity theft tax refund fraud is its number one fraud. This happens when someone steals an individual’s personal information, files a fraudulent tax return using someone else’s social security number and has the refund deposited into their own account. Often, the victim is unaware of what happened until they try to file their own tax return.