New Zealand's Inland Revenue has identified and stopped nearly 3000 fraudulent amended tax returns in a coordinated scheme spread through social media and workplace networks, RNZ reports.

Authorities stopped $4.015 million in bogus claims while $151,787 in refunds had already been paid out before new measures were introduced, Inland Revenue spokesperson Sarah Bourke said on Tuesday. One individual is already under an instalment arrangement to repay funds, while participants face penalties including a 150 percent evasion shortfall penalty and possible prosecution, RNZ business (NZ) reports.