Cybersecurity & Data Privacy

Turbo Tax Identity Theft & Tax Fraud

Issue: Identity theft and tax fraud

Lieff Cabraser represents identity theft victims in a nationwide class action lawsuit against Intuit for allegedly failing to protect consumers’ data from foreseeable and preventable breaches, and facilitating the filing of fraudulent tax returns through its TurboTax software program. TurboTax is used on an estimated 30 million tax returns for American taxpayers every year.

Intuit TurboTax Lawsuit Allegations

The complaint alleges that Intuit knew of the widespread use of TurboTax software for the filing of fraudulent returns, but failed to adopt basic cyber security policies to prevent user data access and misuse by hackers and other cybercriminals, and as a result, fraudulent tax returns were filed in the names of the plaintiffs and thousands of other individuals across America.

“Rather than safeguarding customers’ personal and financial information, the complaint charges that Intuit facilitated identity theft and tax fraud by failing to adopt security measures that would have kept criminals from stealing sensitive data on potentially millions of consumers,” stated Lieff Cabraser attorney Michael W. Sobol.

In the case of one plaintiff, she used TurboTax in 2010 to file her federal and state 2010 tax returns. Thereafter, she no longer used the program to file tax returns. In March 2015, four years after she used the program, she received a bill from TurboTax for $242 for the purported electronic filing of 2014 tax returns in Michigan, Ohio, and Oklahoma, and for filing a federal home and business return. Fraudulent tax returns were filed in all of these jurisdictions in the plaintiff’s name.

Another plaintiff neither purchased TurboTax nor provided any personal and sensitive information to Intuit through TurboTax. Nevertheless, the plaintiff learned that fraudulent federal tax return was filed earlier this year in her name through TurboTax.

Relief Sought from Intuit

The complaint seeks damages and injunctive relief, including an order requiring Intuit to implement stricter cyber security measures that will adequately safeguard customer personal and financial information.

Contact Lieff Cabraser

If you have been victimized by identify theft and/or a fraudulent tax return was filed in your name using TurboTax software, we welcome the opportunity to review your claim. There is no charge or obligation for our review of your case.

We will review your case without charge or obligation. Lieff Cabraser agrees to protect your name and all confidential information you submit against disclosure, publication or unauthorized use to the full extent under the law.

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