Identity theft continues to be on the rise. Identity thieves are looking for new ways to steal your identity. One of the latest identity theft crimes is related to filing your IRS tax returns.
This form of identity theft happens when an identity thief gets hold of your Social Security Number and files a tax return using your identity. If they are able to file the tax return using your identity before you actually file a tax return, they could end up getting your refund. You might not find out until you are informed by the IRS that you already filed a tax return for that tax period
Due to the increase of this type of identity theft, the IRS has responded by putting more employees to work on the identity theft cases and have provided additional training to employees that work with the taxpayers on how to recognize and provide assistance to the taxpayers when the identity theft occurs.
Here are some simple steps you can use to prevent IRS tax refund fraud:
- Shred all important financial information before you throw it out – Many identity thieves still go “dumpster diving” in order to find financial information that they can used to steal your identity. It is important never to just throw out personal financial information. Invest in a shredder and shred your financial information before you throw it out.
- Don’t respond to emails claiming they are from the IRS – Many identity thieves turn to the internet to “phish” for unsuspecting people who are willing to give them personal information. Some of these thieves have gotten very sophisticated in the methods they use. For instance they send out threatening emails stating they are from the IRS and state if you don’t click on the link to respond you will be in trouble. It is important to realize that the IRS would not send out emails or notifications in that manner. If you receive one of these emails, forward it to the IRS or file a complaint with the FTC.
- Don’t give out your Social Security Number unless it is absolutely necessary – Your Social Security Number in the hands of and identity thief is like gold. Be very careful who you give out your Social Security Number to. It doesn’t matter if it is your doctor, school, bank, etc. You have the right to know why they need your number, what they are going to do with it and how they are going to safeguard it?
- Use a firewall and intrusion protection software on your home computer – Invest in a good firewall , anti-virus/spam software keeping the database updated. Update your security patches regularly, change your online passwords frequently and use “strong passwords”.
- Don’t access personal information while surfing on public hotspots – While using a public Internet hotspot like at your local coffee shop, don’t access your personal information. Many identity thieves frequent these places and have software that will allow them to access your laptop, or computer while you are on the public network. For example, they could capture your username and password information when you log in to your bank account. Then they can go into your bank account and transfer funds to their bank before your coffee gets cold.
- File your tax return early – A good safeguard is to file your tax returns early. The longer you wait, the more time an identity thief has to file one using your identity. Then you are faced with having to prove that you were the victim of identity theft which will slow down and complicate getting a tax refund if you were to get one.
- Check your credit report frequently – The truth is there is no way to protect against identity theft 100% of the time. For that reason you should frequently check your credit reports. That way if you see anything suspicious, you can work on resolving it right away.
If you believe you have been a victim of identity theft regarding your IRS tax return, you should contact the IRS as soon as possible by going to their website www.irs.gov or calling the IRS Identity Protection Specialized Unit at 800-908-4490 ext. 245.
