How To Avoid Tax Identity TheftAll Articles
Tax identity theft is frequently the single biggest type of identity theft according to the Federal Trade Commision. Finding out you’re a victim of tax identity theft can be a nerve-racking experience. By the time you learn you’re a victim, it’s usually too late. At that point, your options are slim and usually limited to preventing future damage.
The best approach is to take preventative measures and avoid identity theft altogether. While there are multiple methods to be proactive, you can make the biggest impact by protecting your identity and avoiding scams. These two approaches will limit the exposure of your personal information to unauthorized eyes and dramatically lower your risk.
Protect Your Personal Information
Information such as your Social Security number, birth date, and other personal information should be protected at all times. The only types of people that should see this information are banking institutions, tax advisors, lending companies, and similar businesses. These types of institutions are mindful on how they ask for personal information as well. They will never have you send your SSN through email or any other unsecure method.
In addition to only giving personal information to certain types of people, here are a few more tips that will help keep you safe:
- Don’t carry your Social Security card with you
Regularly change your passwords online
Keep your firewall and antivirus on your computer installed and up-to-date
As we move deeper into the digital age, scammers are more creative and deceitful than ever. Their scams are becoming more elaborate and harder to detect. Many tax identity theft victims unknowingly give away their personal information without knowing they are dealing with a fraudster.
Most victims willingly give their information when they receive threatening phone calls, emails, or postal mail claiming the IRS will take some type of action if the victim doesn’t cooperate. Threats of foreclosure and jail time are usually enough to scare someone enough to send whatever information is requested.
To avoid scams, there a few things the IRS recommends knowing:
You’ll never receive a call demanding immediate payment or any tax-related call from the IRS without first mailing you a bill. If you haven’t received the bill in the mail, be aware you could be dealing with a scam.
If you’ve completed your tax plan and don’t believe you owe any taxes, you can report any potential scam you encounter to the Treasury Inspector General for Tax Administration.
If you’re unsure on whether a person is who they claim, contact the institution directly and ask.
Tax identity theft can be a scary situation if your caught in it. By protecting your personal information and being mindful of scams, you can greatly reduce your risk.