It was easy, even for a criminal on the run in Greece, to use stolen identities to obtain more than $43,000 in fraudulent tax returns, Evangelos Soukas told lawmakers.

Soukas, 28, currently serving nearly eight years in a federal prison on a number of fraud convictions including identity theft, testified before the U.S. Senate Finance Committee that in a two-year period he filed numerous false returns in a number of names. Despite the different names, Soukas had the returns sent to a single checking account in his name.

Soukas testimony last week prompted sharp criticism of the IRS from the panel.

The tax system is riddled with technological holes. The IRS has a lot of work in front of it, Finance Committee Chairman Max Baucus (D-Mont.) said. Ranking member Chuck Grassley (R-Iowa) added, It looks like its easier to defraud the IRS than banks.

Lawmakers were unconvinced.

If you are corrupt, its pretty easy to beat the system, Sen. Ron Wyden (D-Ore.) said to Soukas.

To hijack the personal information of someone is not hard at all, Soukas replied. Social Security numbers are available in many places for a common thief to obtain. The system, in my eyes, is inviting criminals like myself to steal from the IRS.

Soukas criminal career began in the mid-1990s when he began selling non-existent electronics on various Internet auction sites. Through the personal data obtained from the unsuspecting buyers, Soukas launched his career as an identity thief. By 2000, he fled the country in the face of pending FBI charges.

While in Greece, he discovered the IRS was easy prey for identity-theft scams. Soukas said he saw an online H&R Block advertisement that promised tax returns within days of filing. Using his own personal information and a fake W-2 form, Soukas sent an income tax filing via H&R Block claiming a $3,614 return.

He followed that false claim by successfully applying for an online anticipation loan to receive his refund within a few days of the filing. My first thoughts were that is a really easy way to get money and, if I wanted to, I would be able to hijack other peoples identity and never get caught if I were to take the necessary precautions, he said.

The IRS paid out only one in four of the false returns filed by Soukas, but he still managed to receive $43,600 in fraudulent refunds. Soukas said he was never questioned on the validity of the claims, even when he called the IRS to inquire about the status of certain returns.

It doesnt take an Einstein to file false tax claims. It is actually pretty easy, Soukas said. If I really wanted to continue in this field, I could have safeguarded my true identity and never been caught.

Soukas was eventually found in 2005 and sent back to the United States, where he is serving his time in a federal prison in Victorville, Calif. He was convicted of conspiracy to commit wire and mail fraud, conspiracy to commit fraud using another persons identity and numerous individual counts of I.D. fraud and submitting fraudulent claims to the IRS.

What I don’t understand is why doesnt the IRS have some type of security measure by issuing a PIN number or even using a mothers maiden name when filing electronically, Soukas said.

Everson told the committee he would absolutely look into the idea.

Story courtesy of InternetNews.