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Tax Return Identity Theft

Tax return identity theft is a serious issue that’s becoming increasingly prevalent in the United States. Criminals are targeting unsuspecting individuals in an effort to steal their identity and commit tax fraud. It’s a crime that can have far-reaching and devastating effects on the lives of the victims. Thankfully, there are several steps you can take to protect yourself from tax return identity theft. From filing your taxes early to placing a security freeze on your credit report, there are many effective measures you can take to reduce the chances of becoming a victim of this troubling crime. By following these steps, you’ll be better equipped to deal with tax return identity theft and make sure your identity and finances are safe.

1. Safeguard Your Tax Return Against Identity Theft

Criminals can use stolen information to file an impostor tax return and claim your rightful refund. To protect your identity and your tax return against fraud, take these steps:

  • File your taxes as early as possible. If criminals file before you, the IRS can reject the return and return the refund to you.
  • Activate alerts on your credit report to stay aware of any new activity.
  • Make sure to use your updated contact information with the IRS. You must be sure that the correct address and phone number are listed on the IRS website and other forms you send to them.
  • Use a secure, encrypted connection for filing your taxes online.
  • Keep your social security number safe. Never give it out unless you are absolutely certain who is asking for it.

Regularly Monitor Your Credit Report

The best way to ensure that an identity thief hasn’t accessed your information is to monitor your credit report. Free copy of your credit report can be accessed every year. This is an important tool not only for your taxes, but also for any other sensitive information about you. An identity thief could use your information for other malicious activities. Checking once a year to be sure none of your information has changed could help you identify something suspicious.

2. How Criminals Steal Identity Through Tax Returns

Filing False Returns

The dark web is a haven for identity thieves to buy and sell tax return information. Criminals who get access to someone’s personal information can quickly create a false return in that person’s name and collect the refund. Here are some of the techniques commonly used:

  • Creating a false W-2 form stating a much higher income
  • Creating a false Schedule C that allows them to claim more deductions than they’re qualified for
  • Claiming someone else’s dependents to get more deductions

Phishing Scams

To steal your tax refund, criminals sometimes use phishing scams. They’ll send an email or text pretending to be from the IRS, asking you to click on a link. If you do, you will be taken to a website where you will be prompted to verify your Social Security Number and other personal information. If you don’t identify the email as a scam, your stolen information can be used to file a fraudulent return. To avoid phishing scams, never click on a link sent to you by email or text. You should always go directly to the IRS website by typing the URL in your browser.

3. Avoid Becoming a Victim of Tax Return Identity Theft

1. Be Careful with Your Personal Information

Tax return identity fraud is on the rise, and is something that no one should take lightly. To avoid becoming a victim, it is important that you protect your personal information. Don’t provide your SSN, banking info, date of birth, address, or other personal information to an untrusted source. Set up passwords for your accounts and don’t share them with anyone. Be vigilant about who you provide your personal details to so you don’t wind up with fraudsters acquiring them!

2. Protect Your Devices

Once you’ve safeguarded your personal information, you need to make sure that your computer and other devices are secure as well. Install a firewall and antivirus software, and make sure that your security settings are always up to date. Don’t open emails, texts, or other messages from unverified sources, and never click on suspicious links. If you have to use public Wi-Fi for any reason, make sure to use a Virtual Private Network for additional security. That way, your data will remain secure even when connected to an unsecured network!

4. Tips to Help Protect Against Tax Return Theft

Tax return theft can have serious financial implications for anyone, making it vital to protect your information. Here are 4 helpful tips:

  • Be cautious with emails from unfamiliar senders. Being alert for potential scams is essential. Make sure to double-check who the sender is before clicking any included links, and beware of tax notifications from unknown sources.
  • Securely file your taxes only over secure websites, with an authenticated and encrypted connection. Also be sure to verify any domain name, as fraudsters can easily copy legitimate website addresses.
  • When using your debit or credit card to pay taxes online, be sure to only use credit cards whose numbers you recognize. Be careful to not just plug in any card you find in your wallet.
  • As soon as you finish filing your return, it’s a good idea to be proactive and put an alert or freeze on your credit report. This can help prevent people from taking out loans or using your cards in your name.

Finally, make sure you’re always aware of your personal situation and the security protocols you can use to keep any potential tax return theft at bay. With a few simple steps, you can protect your hard-earned money and get the most from your taxes this year.

Q&A

Q: What is tax return identity theft?
A: Tax return identity theft is when someone steals your personal information, like your Social Security number or your banking information, and uses it to file a tax return in your name and collect a refund.

Q: How do most thieves get this information?
A: Most thieves get your personal information from sources like the dark web, or websites that have been hacked. They might also steal financial documents or documents with your name and address on them.

Q: How can I protect myself from tax return identity theft?
A: You can protect yourself from tax return identity theft by keeping your personal information safe. Be sure to use strong, unique passwords on your online accounts. Also, be sure to regularly check your credit report to look for any suspicious activity. It’s important to take the necessary precautions to avoid tax return identity theft and data breach. LogMeOnce offers Identity Theft Protection and Dark Web Monitoring for FREE, and it’s a great way to ensure your personal information is secure. Visit LogMeOnce.com to take advantage of the service and protect your data from potential tax return identity theft.

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