Cybercriminals are always looking for ways to steal your personal information. You should be particularly cautious during tax season.
Scammers may already have some of our confidential information. The many data breaches that have taken place have exposed sensitive information and criminal use that to further compromise us. Here are some steps you can take to stay safe during tax season.
File Early
Filing early can prevent delays and get you your refund quickly, it can also prevent criminals from filing taxes in your name.
Scammers file early before you have a chance to submit your legitimate return. One warning sign that your identity has been stolen and a criminal has filed a return in your name is that your tax return is rejected because it has already been filed.
Other warning signs include receiving a letter from the IRS notifying you that an account has been created in your name that you did not initiate, or you receive a letter inquiring about a suspicious tax return.
Choose a Trustworthy Preparer
If you hire someone to prepare your taxes, be sure they hold the proper credentials. They should be vetted by the IRS. Choose a certified public accountant, attorney or enrolled agent.
Connect Securely
If you are filing your taxes online use a secure computer in your home that is password protected. Never use a public computer or connect to public Wi-Fi when transmitting confidential information. Use a strong, complex password and multifactor authentication for any websites you connect to during tax season. Be sure your computer and security software are up to date.
Don’t Fall for Phishing Scams
The Internal Revenue Service has issued warnings of scammers using the IRS name and logo to trick consumers into providing financial and private information to steal their identity and assets. Don’t respond to email messages, phone calls or text messages that look like they are coming from the IRS. The IRS doesn’t send email or text messages. They rarely call, they typically communicate with taxpayers by mail. If you receive a letter in the mail that looks like it is coming from the IRS read it carefully. Letters can be fraudulent as well. The IRS will never use threatening, demanding, or aggressive language. Call the IRS directly to verify that any correspondence you receive is legitimate.
Read more here on how the IRS contacts taxpayers
Get an Identity Protection (IP) PIN
Sign up for an IP Pin through the IRS. The PIN is a six-digit code known only to the taxpayer and the IRS. Adding this additional layer of security is voluntary. The IRS requires a thorough identity verification process in order for you to receive a PIN.
Once you have a PIN, you will use it when filing your income tax return. If someone tries to file a return in your name using your Social Security number or tax identification number, it will be rejected without the PIN. The PIN is valid for one year and you must obtain a new PIN each filing season. Visit the IRS website to apply for a PIN. https://www.irs.gov/identity-theft-fraud-scams/get-an-identity-protection-pin
Shred Private Information
Shred anything confidential before throwing it away. Thieves go through trash to gain access to private information.
Keep Documents Secure
Store your W2, tax information and other important documents in a secure location. A fireproof home safe is a good choice.
Use a Reputable Platform
Use a reputable company when filing your taxes. Read the company’s privacy policy carefully. Their website should be secure, look for the lock symbol, the web address should start with “https”
Use the Post Office
If you are mailing your returns take the mail directly to the post office. Don’t put tax returns or anything else that contains sensitive information in your mailbox. Mail theft is extremely common. In addition, don’t use the Blue Post Office mailboxes. Thieves break into these mailboxes and steal mail.
Monitor Your Credit Reports
All US citizens are now entitled to a free weekly copy of their credit reports. Go to https://www.annualcreditreport.com/index.action to request your copies from the three major credit bureaus, Equifax, Experian and TransUnion. Check your reports for any inconsistencies and report them to the credit bureaus if found. Credit reports that contain incorrect information can be a sign of identity theft. You should also freeze your credit with all three agencies. Freezing your credit is one of the best ways to prevent identity theft.
The Tech Minimalist 