Identity
theft continues to be one of the major growing crimes in United States
nowadays, and places a large burden on victims, businesses, non-profit
organizations and government institutions, especially when filing tax returns
to the Internal Revenue Service (IRS).
Tax-related identity theft
happens when somebody uses your stolen Social Security number to file a tax
return claiming a fraudulent refund.
Usually, an
identity thief will use your SSN to file a false return early in the year. You
may be unaware you are a victim until you try to file your taxes and learn one
already has been filed using your SSN.
Identity
theft is a top priority for the IRS. They have already taken aggressive action
to protect taxpayers and aid victims, with more than thousands of employees
assigned to work on identity theft related situations. They also train
employees to recognize return fraud and to help victims when it happened.
Because of
this, the IRS prevented $14.6 million suspicious returns, and protected more
than $50 billion in fraudulent refunds from 2011 to November 2013.
You can't
prevent tax-related identity theft because we are all vulnerable, but here are
ways on how to reduce your chances of being a victim.
1. Safeguard
all your personal information in a secured place at home and at work such as a
safe with a locked combination. Don't leave it lying around.
2. If you
wish to file by mail, do it at a post office, not from an unsecured mailbox in
front of your house.
3. Use a
secured computer on a protected network if you wish to file electronically.
Remember not to do anything financial or tax-related on public Wi-Fi networks.
4. Beware of
phishing scams. Phishing includes seemingly harmless emails being sent to you,
asking you to verify certain things such as passwords, account numbers or
credit/social security details. Any email looking for this kind of information
must be an immediate red flag for you. Avoid opening emails that doesn't make
sense to you or that comes from people or organizations that you don't know. It
might be possible that they include viruses or worms. Remember that the IRS
doesn't begin contact by email to specifically ask for your personal or financial information.
5. Protect
your social security number. Don't carry your Social Security card in your
wallet or purse. Only carry them with you unless you are going somewhere where
it will be absolutely necessary. Don't forget that identity thieves only need a
social security number and some fake documents. It is much easier than selling
drugs or stealing cars.
6. Tear up
or shred any documents with identifying information on them. Don't just throw
your old billing statements and other documents containing important
information into your garbage. There are "dumpster divers" who are
willing to go through old coffee grounds and rotten orange peels to get your
data into their hands. Purchase crosscut paper shredder and completely destroy
any piece of paper that has your credit card number, your social security
number, or your bank account number on it.
7. Regularly
monitor your financial accounts for there might be unusual withdrawals or
credit card purchases.
8. Check
your Social Security Administration (SSA) earnings statement every year.
9. Get your
return done as early as possible. It really is in your best interest to file as
early as possible.
10. Protect
your computer. Some identity thieves now use advanced software to get your
personal information such as login details and passwords. A strong and
regularly updated firewall, anti-virus program and anti-spyware program will
give most of the protection you need.
For more
information and updates check our Corliss Group Online
Financial Mag Blogspot or you can follow us on Twitter @CorlissGroupMag
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