Increasingly effective identity theft fraud methods, combined with state mandates to rapidly pay citizen tax refunds, have combined to dramatically increase the rate of fraudulent tax refund payments in recent years. In 2015, the IRS paid out $5.8 billion in fraudulent returns and they estimate a staggering 27% of the $65.2 billion in Earned Income Tax Credits (EITC) were improperly paid. States, which collect revenue, sales, use, and other taxes also struggle with these emerging fraud trends.
Pondera's System, built "by investigators, for investigators", offers an extremely powerful, yet easy-to-use system to combat fraud, waste, and abuse in Revenue Tax systems. Our integrated system spans fraud detection, investigation, and enforcement.
Detect Tax Fraud
Fraud Detection as a Service (FDaaS): Pondera's core detection system that includes over 170 Alerts, Prediction Models, and Geospatial Analysis Maps designed specifically for state revenue tax systems. Validates employers, filers, and returns. Searches for issues such as deceased, incarcerated, and out-of-state filers, shared program attributes such as emails, addresses, and IP addresses, and fictitious businesses created specifically for W2 fraud.
Fraud Risk Scorecards: Combine data matching services and behavioral flags to generate a fraud risk score for every employer and filer in your program. Stack rank all program actors to prioritize enforcement activities. Create custom scorecards based on your own investigative experience and apply that to the entire program database.
Investigate Tax Fraud
SuperSearch: Search the FDaaS database and integrated public records databases for information on employers, filers, associates, affiliates, and more. Hyperlink to employer and filer profiles for more information such as fraud indicators, alert history, geospatial maps, and Google Street View of locations.
Network Analyzer: Visually explore associations and network linkages between and among employers and filers. Use pre-built Tax templates for issues such as corporate associations and clusters of out-of-state filers. Save and share maps with fellow analysts and investigators.
Social Media Analyzer: Discover connections, associations, and investigative data through analysis of social network sites, blogs, and other on-line services. Save newly discovered links to your link analysis charts or open cases for investigation.
Enforce Tax Codes
Case Tracker: Create, manage, collaborate, and report on cases generated by Pondera or through tips or other automated systems. Add notes, documents, and images to your cases.
Intel Reports: Request in-depth investigative reports from Pondera's Special Investigation Unit (SIU), staffed by certified fraud examiners, revenue tax experts, and former law enforcement agents. Reports include behavioral, link, and social network analysis.
Executive Dashboard: Easily review the results of your detection and enforcement activities via a graphical management reporting system. Analyze your program's most frequent Alerts, associated refund amounts, and trends over time.
Pondera's entire suite of tools is fully integrated, passing data and leads between the detection, investigation, and enforcement modules. Your analysts and investigators access the system through a secure Internet Browser. Additional advantages of Pondera include:
- Rapid Deployments: Go live in as few as 120 days
- Cloud Infrastructure: No need to buy hardware or software
- Machine Learning: Identify emerging fraud trends with constantly improving algorithms
- Integrated Third Party Data: Validate identities, incarceration status, addresses, and more with pre-tested consumer and business databases