Verafin Inc, a provider of fraud detection and anti-money laundering collaboration (FRAMLx) software, has launched a new analytic designed to help US banks and credit unions uncover suspicious tax refunds.

The company’s move comes at a time when the tax season is in full swing, during which fraudsters will try to exploit taxpayers’ personal information to steal millions of dollars in fraudulent tax refunds.

The Internal Revenue Service (IRS) has implemented various measures to stop identity theft and related fraudulent refunds. Susceptibilities to fraud, however, still exist in the tax preparation and filing process..

Verafin worked closely with financial institutions across the US to build and improve the new tax fraud analytic.

The new solution warns investigators at financial institutions when a dubious Federal and State tax refund is deposited into a customer’s account.

This helps both credit unions and banks detect potentially suspicious tax refunds.

Mauriceo Castanheiro, Director of Analytics at Verafin, commented, “Tax fraudsters are usually waiting for those suspicious refunds to be available — then they withdraw as much as they can.Our analytic runs daily — early detection is critical to be able to return those refunds to the IRS right away before more illicit funds end up in the hands of criminals.”

Verafin has made name for its innovative approach to crime-fighting technology. The company recently unveiled FRAMLx to help financial institutions uncover criminal networks and criminal activity across multiple institutions.