Realized I was involved in something shady financially — stopped, now trying to unwind it safely. What’s the right way to handle this?

I’m looking for general guidance, not loopholes or ways to hide anything. Over the past year I was involved in a small-scale financial arrangement where I was asked to move funds and received small cuts (usually very small weekly amounts). At first I didn’t fully understand what was going on, but at some point I realized it was not legitimate and stopped completely.

Recently, a very large federal tax refund (six figures) was initiated to my bank account that I did not file for and am not entitled to. I realized this before it posted. I have not touched the money and do not intend to.

My current plan is:

• Report the pending deposit to my bank’s fraud/risk department so it can be frozen/reversed

• Not move, spend, or transfer any of the funds

• Cut off all involvement with the other person

• Get an IRS IP PIN to protect my tax identity going forward

I’m not trying to protect anyone else or keep money that isn’t mine — I just want to make sure I handle this in a way that doesn’t make things worse and shows I stopped once I understood the situation.

For people familiar with tax, banking, or compliance issues:

• Is reporting to the bank first the correct step?

• Is there anything else someone in my position should do immediately?

• Is this the type of situation that typically stays administrative if the money is untouched?

I understand no one here is my lawyer — I’m just trying to sanity-check that I’m taking the right defensive steps.