Miami Legal Tips Blog

Miami Dade College Students Charged with ID Theft

urlAccounts used by students to receive financial aid were compromised in an attempt to use the stolen information to file fraudulent income tax returns, says an Associated Press report.

The report cites Miami U.S. Attorney Wifredo Ferrer as saying that 21 people were charged, with all but three being either current or former students at Miami Dade College. They were accused of having deposited ill-gotten tax refunds into their Higher One aid accounts.

“The disturbing fact is that (many) of these individuals are current or former students who allowed their accounts to be compromised,” Ferrer said in a news conference.

Ferrer, the newspaper said, indicated that the scheme resulted in $1.9 million in intended loss to the Internal Revenue Service. Almost half a million had been paid out. Those cases involved nearly 650 victims of ID theft.

A Miami Dade College spokesman released the following statement to a local television station:

“The actions of these individuals are in no way a reflection of the vast majority of the hardworking, honest students at Miami Dade College looking to improve their lives and their families’ (lives). In fact, the situation was reportedly orchestrated by individuals not connected to the college, taking advantage of often vulnerable students. It’s also important to note that what has reportedly transpired is not a result of a lack of vigilance and pro-activeness on the part of the college. We look forward to a thorough review and resolution of this matter and are working closely with the U.S. Attorney’s Office.”

Most of those arrested, if convicted, could face prison terms ranging from two to 10 years. According to the IRS, Florida – and South Florida in particular – is one of the nation’s leading areas for identity theft that is then used to commit tax fraud. According to the Department of Justice, ID theft in Florida reached “epidemic proportions” in 2013, with officials registering over 190 complaints per every 100,000 individuals. In Miami, that number almost doubled to 340 complaints per 100,000.

A spokesperson for Higher One told Reuters the company applauded word of the arrests, and that it would “continue to be vigilant in safeguarding our customers’ personal and financial information”.

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