How a USPS Worker Stole $1.6M in IRS Tax Refunds

Tax season is already stressful enough. But what if the refund your client is waiting for ends up paying for someone else's luxury Bali getaway? That’s exactly what happened in one of the wildest fraud cases to hit the U.S. tax system in years. Enter Hachikosela Muchimba a now-former U.S. Postal Service worker who used his position not to deliver mail, but to intercept and cash nearly $1.6 million in tax refund checks. Let’s break down how it happened, why it matters to your profession, and what you can do so your clients don’t end up accidentally funding someone else's lavish lifestyle.

Signed, Sealed... and Stolen

Muchimba worked the Friendship Post Office route in Washington, D.C. from February 2020 until early 2023. With a USPS uniform and access to residents’ mail, he didn’t need hacking skills or fake IDs, just sticky fingers and a bold plan. His specialty? Snatching U.S. Treasury checks, especially juicy tax refund checks, from the mail before they ever reached their rightful owners. In a classic "inside job" twist, he’d either alter the payee’s name or slap on a forged endorsement, then deposit the checks into one of seven bank accounts he controlled. Some were even under the name of a shell company, Double Blue Investments, LLC. (Because apparently “Sketchy Business, Inc.” was already taken.) Caught on surveillance cameras making ATM deposits, sometimes in full postal uniform, mind you—He was as brazen as they come.

How Did This Even Get Past the IRS?

The IRS has been pushing for years to move refund payments to Direct Deposit, citing it as safer, faster, and less fraud-prone. And they’re not wrong—this year alone, 97% of refunds have been issued via Direct Deposit. But that still leaves millions of paper checks floating around in the mail.

In 2023, the IRS issued 120.9 million refunds, totaling more than $461 billion. Even if just a small fraction were paper checks, that’s still a massive opportunity for theft—especially from the inside. The fraud wasn’t some high-tech hacking job—it was low-tech, high-impact, and proves that tax refund fraud doesn’t always need a keyboard. Sometimes, it just needs a mailbag.

The Slip-Up That Brought It All Down

The dominoes started to fall in January 2023, when a D.C. resident reported their $14,000 refund check never showed up. The kicker? They recognized the name and address of the person who deposited their check, it was the same as the holiday card their mailman, Muchimba, had dropped off weeks earlier. Boom. That’s how investigators got the first real lead.

From there, they uncovered:

• 98 misappropriated checks, mostly from the Treasury
• Over $1.6 million was deposited across 7 banks
• A $415,000 check—yes, one check—that turned up during a search of his home
• An accomplice postal worker, paid via CashApp to swipe a check for him

And just when it looked like the gig was up, Muchimba booked a one-way flight to Zambia using someone else’s credit card. He was arrested at Dulles Airport with $2,000 in cash and a brand-new Zambian passport.

So, What’s the Bigger Picture for Finance Professionals?

This case should hit close to home for tax preparers, accountants, and financial planners. You’re the first line of defense for your clients’ refunds, and that trust is priceless. Here’s how to make sure no one reroutes it:

• Encourage clients to avoid paper checks entirely. Have them double-check their bank account and routing numbers before filing. One typo = refund limbo.
• If you’re filing on a client’s behalf, always confirm bank account info directly from them. Fraudsters sometimes target preparers to reroute refunds.
• If a refund hasn’t arrived within 21 days for e-filing or 6 weeks for paper returns, something may be up. Especially if it’s a large refund amount.
• Use e-signature tools, audit trails, client portals, and IRS Identity Protection PINs (IP PINs) for added safety.

Final Thought

As Ben Franklin once said, “In this world, nothing is certain except death and taxes.” But thanks to Muchimba, you can now add “and tax fraud” to that list. While the U.S. Postal Service works 6 days a week for 153 million customers, this one employee turned trust into treasure. Muchimba may be headed to prison (sentencing is set for August 8, 2025)—but the vulnerabilities his case revealed are still in play. For finance professionals, it’s a wake-up call. Fraud isn’t always high-tech or obvious. Sometimes, it’s your friendly neighborhood mail carrier with a side hustle and access to a few too many refund envelopes. Keep your clients' money safe. Be proactive, not reactive. And remember: the safest tax refund is the one that never touches the mailbox. Unlock exclusive insights, expert opinions, and the latest industry trends—straight to your inbox. Subscribe today and stay informed!