New Mexico tax officials say criminals are stealing personal information and filing fraudulent tax returns.
State tax officials say fraudulent tax returns totaling nearly $209,000 were filed for 103 out-of-state taxpayers.
The Taxation and Revenue Department intercepted about $70,000 in fraudulent returns before they were paid out.
But tax officials say nearly $139,000 was paid out on 73 fraudulent returns.
Taxation and Revenue Secretary Demesia Padilla says the department has implemented security and audit measures to track suspected fraudulent tax returns before they're processed.
The agency is working to try to recover the stolen money.
It's also sending letters this week to taxpayers whose identities were stolen or compromised.
Officials are asking residents to contact the Taxation and Revenue Department if they suspect their personal information has been stolen.