<h1>CBDT tackles Mumbai tax refund fraud; unauthorized refunds issued using compromised credentials. Steps taken to prevent recurrence.</h1> The Central Board of Direct Taxes (CBDT) is addressing a tax refund fraud in Mumbai where refunds were issued without proper authorization. An internal inquiry revealed that fraudulent use of officers' User IDs and Passwords led to unauthorized refunds. The Income Tax department has taken steps to mitigate the issue, including stopping payments, investigating involved bank accounts and beneficiaries, and notifying Mumbai police and CBI. To prevent future occurrences, all high-value refunds for the fiscal year will undergo cross-verification, and a more secure system for handling these refunds will be implemented.