NEW YORK (AP) - TurboTax, the country's most popular do-it-yourself tax preparation software, said Friday that it has temporarily stopped processing state tax returns due to an increase in fraudulent filings.

NEW YORK (AP) TurboTax, the country's most popular do-it-yourself tax preparation software, said Friday that it has temporarily stopped processing state tax returns due to an increase in fraudulent filings.

State agencies have reported a rise in filings that are using stolen personal information, said Inuit, the company behind TurboTax.

Most victims found out that a fraudulent tax return was filed in their name after receiving a rejection notice after filing their returns, said Inuit spokeswoman Julie Miller.

There haven't been issues with federal returns because the Internal Revenue Service has implemented stronger fraud detection policies, Miller said.

The company is working with security company Palantir to investigate the problem. So far, Intuit said there was no security breach of its systems. Instead, it believes personal information was stolen elsewhere and used to file returns on TurboTax.

Miller linked the problem to recent security breaches at large companies. Just this week, Blue Cross Blue Shield insurer Anthem Inc. said hackers gained access to Social Security numbers, names, addresses and other personal information of about 80 million people. It follows other security breaches at JPMorgan Chase and several retailers, including Home Depot and Target.

"You have a pretty rich pool of data out there in the world," said Miller.

Intuit said state tax returns already filed since Thursday, when the halt began, will be transmitted as soon as possible. Users can still use TurboTax, and the company will file the state tax return when the halt is lifted. The company expects to start procession state returns again on Friday with increased fraud protections, said Miller.

TurboTax processed 30 million tax returns last year, Miller said.

Shares of Intuit Inc., based in Mountain View, California, fell $3.05, or 3.3 percent, to $88.65 in morning trading Friday.