Our handy tax identity theft survival guide highlights the measures you need to take to protect yourself.
Tax identity theft happens when an identity thief (opens in new tab) manages to get hold of important information like your Social Security number and subsequently files a forged tax return (opens in new tab). Often, this will happen early in the tax season (opens in new tab), and in many cases, this occurs before the victim files their official return. Before the victim realizes the identity thief will have made off with their tax refund (opens in new tab), leaving them out of pocket financially and in emotional turmoil. The situation has been exacerbated with the introduction of e-filing alongside the traditional paper filing procedure. This is because identity thieves can produce additional fake information to support their digital claims. And, because they are out of sight, they can better avoid being captured. However, help is at hand if, to start with, you invest in an identity theft software (opens in new tab) package. Identity theft prevention software is widely available and very affordable, with options starting from just a few dollars a month. It’s easy to tailor a package that suits your needs because everyone has different requirements. If, for example, you have a family, identity theft packages can also be used to cover other members. Investing a few hours into what to look for in a package is time well spent and could save you money in the long run. While tax identity theft is becoming increasingly commonplace, broader issues are also at play here. With so much of our lives now being online, including everything from social media (opens in new tab) profiles to the claiming of expenses (opens in new tab) and the e-filing of our taxes plus all those other points in-between, there are more opportunities for identity thieves. Sometimes it might only be something simple that you overlook, which can give an identity thief a helping hand they’ve been looking for.
