Avoiding Tax-Related IdentityTheft:
What Consumers Need to Know to Protect Personal Information
According to a recent report by MSNBC, identity thieves are actively targeting tax returns. As the use of personal computers to prepare important financial documents for tax filing increases, so has the incidence of fraudulent tax returns. In fact, according to the FTC's 2008 Consumer Sentinel Network, the incidence of fraudulent tax returns increased 4% from 2007.
IdentityTruth® has compiled a list of tips to keep in mind this tax season
- Beware of calls from the "IRS": If you receive a phone call from the IRS asking for personal information, hang up because it's a scam. Fraudsters call asking for your account number and bank routing number to deposit your refund. Armed with that information, they can in fact set up an electronic debit and siphon funds from your account. Contact the IRS Taxpayers Advocates to report it.
- The IRS does NOT email taxpayers: You may receive emails pretending to be from the IRS asking for your personal information. This is a scam. Identity thieves use these "phishing" attempts to solicit personal information for future misuse. The IRS does NOT communicate with taxpayers via email. Visit their site for more information.
- Don't use online filing programs: Make sure the tax filing software resides on your desktop. Online filing programs are easily penetrated by identity thieves, and sensitive information could end up on countless other servers.
- Protect your desktop: Make sure your computer has the latest antivirus and spyware to protect you from invasion. This is even more critical during tax filing time. Your personal information is always for sale in the hands of identity thieves.
- Protect Hard Copies: Keep your personal tax information locked up in a safe place in the event your home is invaded and to prevent loss of the documentation. Shred everything containing sensitive information that you do not plan on keeping.
- Tax Preparer and Privacy: Make sure you know your tax preparer or accountant well enough to trust him or her with your personal records. Check with the Better Business Bureau to determine creditability. If you suspect something fishy about the person or place, trust your first impressions.
As of December 2008, the FCC still lists identity theft as America's fastest-growing crime. More than 79 million identities will be lost this year alone.
Credit monitoring is not enough - only 15% of identity theft is credit related while 85% of identity fraud happens outside the credit system. In addition, approximately 3 million social security numbers are stolen annually.
For more information on how to protect your identity and privacy visit http://www.IdentityTruth.com or http://www.AllAboutIdentity.com.
