Experts talk risks of tax refund fraud, a $21 billion criminal business

Podcast presented by IBM, Diamond Sponsor of the 2016 Financial Crime Conference

The IRS believes that tax-refund fraud will hit $21 billion this season. That’s more than three times what it was two years ago. The problem is a combination of old, outdated detection systems, siloed information amongst departments and a multitude of the fraud schemes. The April 15th filing deadline is fast approaching. Come listen to Tax and Fraud experts discuss fraud issues and ways of combatting them.


Steve D’Alfonso

Steven D’Alfonso joined IBM in April of 2014 as a member of the Red Cell team.  Red Cell is a team of subject matter experts in the field of counter financial crimes. Red Cell is tasked with identifying current and emerging trends, development of thought provoking research papers, strategy development, creation of profiles to detect/prevent financial crimes, and providing input into the creation of application/software to maximize the use of inherent and external intelligence. Prior to joining IBM, Steven was Vice President and Senior Financial Crimes Intelligence Analyst at Bank of America Global Financial Crimes & Compliance, Strategic Intelligence Team. In that role, he was responsible for the analysis of internal and external financial crime trends and creation of intelligence products, line of business executive management reports, and built financial crime models to improve the detection/prevention process. Steven received a B.A. in Speech Communication from the University of Rhode Island and earned his M.B.A. in International Business from Johnson & Wales University. In February 2012, he received confirmation as Certified Criminal Intelligence Analyst (CCIA) from Sacramento State University and is Six Sigma and DFSS Green Belt Certified.

Terence Lutes 

Terence H. Lutes is the leader of the revenue management practice for IBM, responsible for strategic direction and growth in IBM’s public sector revenue agency and treasury department business.  Additionally, he represents the company on the international Standard Business Reporting Committee helping develop unified strategic direction for regulators and the software/consulting communities that support them through development and promotion of international financial data standards. Before joining IBM, Terry served as Vice President, Government Consulting of Alluvion/The M Group.  The work of the company included supporting US projects at IRS and the FDIC as well as finance/tax/IT consulting services for World Bank, USAID and USTDA projects in developing countries. Terry previously completed a career with the U.S. Internal Revenue Service which spanned 28 years and over the last eleven years, as an executive, had assignments managing service, processing, compliance, e-strategy and IT functions.  He successfully managed IRS organizations as large as 6,500 with budgets as large as $1.5 billion (U.S.).  Additionally he was responsible for providing strategic and operational direction to the development and promotion of electronic tax products designed to best serve the needs of business and individual taxpayers and their representatives. During the final 6 years of his IRS career, Terry served as U.S. representative to the OECD Taxpayer Services Subcommittee, also chairing the group for 2 years.  He continues to serve as an industry representative on the OECD Tax eAudit Task Group. Though his government and private sector background, Terry has been working with tax agencies around the World for over 15 years and is familiar with tax administrations and tax issues on all continents.  He serves as a member of the Board of Directors of the International Tax and Investment Council, a group that works with governments on tax policy and tax administration issues impacting the business community. Terry also served for 2 years as Chairman of the Board of Directors of Chiliad, a Massachusetts search technology company.  He graduated from Eastern Kentucky University and also holds a Master’s in Public Administration from the University of Colorado.