Today, thieves are coming up with more and more devious ways to try and trick you into giving them your personal information. A criminal can open up a new line of credit in your name, rent an apartment, purchase cars, homes, and other goods, get a job, get out of criminal acts, or take over your bank account. In other words, the instant you give up certain personal information to a thief, you are in jeopardy.
What information do thieves want?
Here are some basic things to look out for when trying to determine if something is a scam or not.
Companies you may already be doing business with –
I want to get a line of credit with this company, is it legitimate?
I just got a notice that I won a prize/lotto. Is it legitimate?
Some rich person in another country or some US soldier stationed in another country wants to share their fortune with me or needs help moving their fortune to the United States. Is this for real?
For more information on scams, please visit the ITRC website section on Scams & Alerts.
Tax time, whether it’s in April, June, October or December, often puts important personal identifying information at risk for exposure. Your W-2’s, and other IRS reporting forms, include your Social Security number and, in some cases, financial account information. These numbers can be a gold mine for identity thieves. Your personal information can enable a thief to obtain a job, open up new lines of credit, access existing financial accounts or stock portfolios, get welfare, avoid a criminal history and generally create havoc in your life.
The question is: where are those forms kept in your home? Are they lying on a table top or somewhere anyone can see them? Or, are they in a locked box or file cabinet? Many consumers are not aware of the potential threat that these forms represent, and take little notice of the necessary steps which should be taken to secure these items.
With this in mind, the ITRC wants to remind consumers and businesses to be careful when handling tax-related documents and information.
Here are some tips on how to minimize the risk of identity theft:
Whether it’s in the home or in the office, make sure all tax documents and paperwork are secured in a safe, locked location at all times. Any financial statement or item which contains personally identifying information (PII) should not be left unsecured or visible to others.
Financial documents don’t belong in a briefcase left unattended in your car. Law enforcement has reported increases in vehicle break-ins to steal items which can be used to commit identity theft. When transferring tax documents between home and the accountant, make sure they are hidden from view, i.e. locked in the trunk, at all times.
If your computer is linked to the internet, be sure to regularly update firewall, anti-virus, and anti-spyware software to protect you from attack. Since many taxpayers now file online, or store financial information on their computers, it is vitally important to install and update these types of security programs. Sensitive documents should be kept on a computer with a password protected log-on. This computer should never be used by children others who might install peer-to-peer software (Kazaa or Limewire) or expose the computer to unrestricted web browsing. These activities often result in security problems.
While preparing your tax return for filing, make sure to use a strong password to protect the data file. Once your return has been e-filed, burn the file to a CD or flash drive and remove the personal information from your hard drive. Store the CD or flash drive in a lock box or safe. If working with an accountant, you should query them on what measures they take to protect your information.
Be sure to retrieve your mail every day. An unlocked mailbox is an open invitation to an identity thief to steal your tax refund or other important documents. When mailing your tax documents, take them directly to the Post Office. Drop them in a box inside the Post Office. If you must use an outside Post Office pickup box, it’s best to drop your mail before the last pick-up of the day. Don’t leave tax documents in an outgoing mail box at work.
Be selective about who works on your taxes. Investigate tax preparation companies with the Better Business Bureau, especially new or seasonal offices. Ask the preparer how your information will be stored? Will it be encrypted? What computer security software is used? Who has access to this information? Has the person working on your taxes undergone a thorough background screening? How many years have they worked for the company? Do you see personal papers displayed on desks? Trust your impressions. If you feel uncomfortable, or doubt the firm’s commitment to protecting your privacy, take your business elsewhere.
The phrase “buyer beware” especially applies to “on-line tax preparers.” Who are these people? What do you know about them? Are they really a company or legitimate accountant or is it a scam to gather Social Security and account information from you?
Directory of Federal Tax Return Preparers with Credentials and Select Qualifications - This searchable directory is intended to help you with your choice by providing a listing of preparers in your area who currently hold professional credentials recognized by the IRS or who hold an Annual Filing Season Program Record of Completion. (This directory is updated regularly and is current as of 12/28/2015. It may take up to four weeks after the IRS receives an update for a tax return preparer's information to be added or revised in the directory.)
Avoid doing financial business in supermarkets, or other public concession booths, where others may hear or see your transaction. Those mini offices are not soundproof - and criminals have been observed using binoculars or shoulder surfing to gather information. Go someplace where you have more privacy.
If you receive an email asking for your Social Security number or financial information, delete it or send it to the FTC for investigation. The IRS does not send emails stating you are being electronically audited or that you are getting a refund. If you have any questions about an email you received from the IRS, or a letter that sounds suspicious, immediately call the IRS Taxpayers Advocates at (877) 777-4778.
Put papers you no longer need through a cross-cut shredder. These include credit card receipts, other papers with Social Security numbers (i.e. income reporting forms), financial statements, health benefit statements and loan documents. Do not store these documents intending to shred them at some future time. As soon as you determine the document is no longer needed, shred it!
When storing your tax returns and other sensitive financial documents, use a locking file cabinet or even better, a safe. Make sure you know who else has access to this storage.
Identity theft goes beyond the well-known forms of financial identity theft. Sometimes identity thieves use your identity to get a job, obtain welfare, or medical services. They may be employed and using your Social Security number – or even your child’s Social Security number. In these situations, the IRS may send a notice indicating that more than one person is using a Social Security number, or that you owe taxes. If this happens, immediately contact the IRS Taxpayer Advocates or the Identity Theft Resource Center at (858) 693-7935 for assistance.
Hurricanes, tornados, fires, earthquakes and man-made disasters are frightening and cause a lot of chaos. Taking the time today to create an action plan might help you avoid future identity theft related situations.
Be prepared to evacuate. Keep photocopies of these items readily available, preferably in a sealed large envelope or a locked box.
In most emergency situations, media will be a primary source of information alerting you on actions to take and scams to avoid.
Many consumers complain that while they remove their Social Security cards from their wallets, the Social Security number is still on their Medicare cards.
The ITRC would like to make the following recommendation. This simple tip could keep an identity thief from getting your Social Security number and protect yourself from becoming a victim of identity theft.
On this blank sheet, write down following: