California has stopped more than $6 billion in tax fraud in the last 8 years

FTB’s fraud prevention and detection team is responsible for identifying and preventing fraud involving improper claims for refundable credits, erroneous refundable payments, and tax-related identity theft. 

“At a time when California is facing real budget pressures and difficult fiscal tradeoffs, identifying and stopping waste, fraud, and abuse is not optional, it is essential,” said State Controller Malia M. Cohen, California’s Chief Fiscal Officer and Chair of the Franchise Tax Board. “Through early detection and decisive action, the Franchise Tax Board stopped nearly $600 million in fraudulent refunds that preserved funding for core services Californians rely on.”

Stopping fraud

FTB’s fraud program is committed to detecting, preventing, and responding to fraudulent activity while upholding the highest standards of integrity, and customer protection. FTB has invested heavily in educating its staff to identify emerging fraud patterns, respond promptly to suspicious activity, and apply consistent, data-driven review practices.  

Collaboration among multiple state agencies and participation in the Information Sharing and Analysis Center (ISAC) increased visibility into national fraud trends, thereby amplifying their efforts. FTB and its partners rapidly shared intelligence, improved threat detection, unified the approach to protecting public funds, and prevented hundreds of millions in fraudulent tax activity.

Protect yourself  

FTB reminds taxpayers to review its online scam-avoidance tips and to be especially cautious with their tax, bank account, credit card, and other personal information. 

Scammers may pose as IRS or FTB 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:  

Report fraud 

FTB offers a way to report suspected scams and provides tips on how to avoid them on its online Scams webpage. 

For suspicious letters, call FTB at 800-852-5711 or visit the Notices and letters page for more information. Also, visit FTB’s text messaging page to see when and what texts FTB sends.