Imagine this:
This tax season, you came prepared. You kept pristine records of your expenses and deductions all year, and you’ve even filed your return with the help of a trained and legitimate tax professional. You’re excited about getting the refund that you deserve, thanks to your supreme diligence. It’s finally here – that delicious refund that you’ve already allocated to savings, investment, family vacation, etc. – but when you open it, it’s not a refund at all. It’s a rejection notice informing you that a return has already been filed and approved under your social security number. Your refund was sent to someone else.
“What is Tax ID Theft?”
You may not be aware, but identity theft runs rampant during tax season. Tax ID theft is committed by perpetrators who collect social security numbers and file fraudulent returns with the IRS or state governments, collecting large refunds that belong to other individuals. The IRS has made improvements in recent years to reduce the risk and prevent suspicious returns from being approved – in 2013, while the agency did pay out $5.8 billion in fraudulent refunds, it also managed to block $24.2 billion from being approved. However, the threat is still great – the IRS has recently warned that the 2016 tax season has seen a 400% surge in phishing and malware incidents. For people who may be at risk, this figure doesn’t bode too well.
If you’ve never been a victim of identity theft, you may feel like it could never happen to you. On the other hand, you might just assume that the major risk factors are essentially beyond your control. The reality? Most tax ID theft is a result of people not being careful with their information.
“How can I minimize my risk?”
First of all, there are basic measures that everyone should be taking to prevent not just tax identity theft, but ID theft of all kinds:
- Protect your financial information. Always shred financial statements and other documents containing personal information when you’re not planning to keep them on file in a secure place.
- Never carry your Social Security card in your wallet or on your person unless you specifically need it that day. Likewise, don’t carry any documents that display your SSN or ITIN.
- Whenever a business or agency asks for your SSN or ITIN, don’t assume that they need it. Only provide it when required.
- Check your credit report for any suspicious accounts or activity at least once every 12 months.
- Make sure that you have up-to-date firewalls and anti-spam/malware software on your computer, and change your Internet account passwords regularly.
Most importantly, remember that the IRS will never ask for your log-in credentials, SSN, or other personal information via unsolicited calls, texts, or emails. No matter how official an email or corresponding website looks, if you’re asked to provide this kind of information, you are more than likely being targeted by a “phisher” who is planning on using it fraudulently. Moreover, you may be a victim of identity theft if you receive a notice from the IRS stating a change or discrepancy in the number of returns you filed, the refund you’re expecting, a balance you owe, the wages you earned, or the benefits you’re due. If you believe that such a notice is the result of ID theft, respond immediately by calling the number provided with the notice.
“Great! So I’m safe now, right?”
Well, not exactly…
These simple steps will go a long way toward reducing your risk, but the reality is that identity theft methods are growing more and more sophisticated every day. If you’re really interested in maximizing your ID security, you may want to consider LifeLock. LifeLock’s job is to stay one step ahead of the trends and developments in identity theft to provide leading protection for the personal and financial information of thousands of members worldwide.
At the LifeLockCodes.com blog, we’re not only here to provide you with breaking news and valuable information in ID security – we also have access to the deepest discounts available anywhere for LifeLock services. Subscribe or check back in for our latest updates, and be sure to check out LifeLock for the best in identity theft protection.
