How can Taxpayers Protect Themselves from Identity Theft and Scams?
We are in a season where most of you do not talk about taxes that much. In such cases, we tend to shelve almost everything about the subject, including reviewing our online and personal identity security. But let me warn you, identity protection is something you cannot afford to ignore perpetually. The reason is that criminals and scammers are on the prowl around the clock, looking for new victims. We have shared articles in the past talking about their criminal activities, and they don’t stop, nor do they change. And in this article, we share the things you should do to protect yourself from identity theft and scams.
Below, we share tips to protect yourself from identity theft and scams.
Study the criminals’ patterns.
The IRS has something it calls “Common consumer and tax-related identity theft scams.” I took this statement because of the word ‘common’ therein. This tells you that criminals usually employ the same tactics to steal, for example, bank account information, such as your email address and passwords. Therefore, if they do this regularly, you should study them and note all their usual strategies for your protection.
For example, it is not easy to get hold of your bank account information unless someone asks it from you. Criminals have certain ways of asking for this information. For example, they may send an email with your bank’s logo and letterhead, telling you that something has happened with your account, hence you should change your password. If you are not diligent and don’t verify if it is really your bank, you may click their links and go on to fill in your banking details. As soon as you do that, they will have your email and password.
You could be asking how you verify if the email is from your bank. Well, this is easy: You can simply look at the sender’s email address and compare the last part with your bank’s website. Also, if you click links in these emails, they take you to a web page that might have some similarities to your usual online banking site, but differences always exist. You should also check this and verify the URL on that website. If it is not the same as that from your bank, it’s criminals going after your banking details.
You can also study their patterns by annually reviewing the IRS’ dirty dozen list of tax scams. They release the most rampant tax scams each year, which should give you a solid idea of how these criminals operate.
Learn how to protect yourself, monitor, and report any suspicious activity.
Swift action whenever you suspect you are about to be the victim of identity theft or a scam can protect you. That is why the IRS wants you to learn some methods for reporting and recovering from identity theft in their upcoming webinar, organized in conjunction with the Federal Trade Commission. Attending this could give taxpayers a huge boost in methods they can use to free themselves from identity thieves and scammers.
Nevertheless, you can also protect yourself by totally avoiding working with unscrupulous tax professionals and accountants. These people hold your valuable personal information, and if they are fraudulent, they will not hesitate to sell your identity to someone else and even help them file a fraudulent return so that they line up their pockets. If your identity is stolen, you get into so many problems, which is not ideal for anyone. So, you should be diligent when looking to hire an accountant or tax professional. If you need any of these services, contact my team any time you feel free. We take pride in protecting the identities and sensitive information of all our clients.
Get identity theft protection.
Finally, it is not all the time that you are successful at thwarting criminal activities. Sometimes they will win at your cost. In such cases, you will require some services to provide extra protection so that you won’t lose. Of course, it will cost you some money, but such is the rampancy of identity theft and scams; people are paying insurance companies for protection. More so, some credit bureaus are also offering such services. They are best placed for such because they help you monitor your credit from time to time. Hence, they have all your updated information. If something sinister happens, no one is best suited to defend you than them. Some of their services will monitor identity theft on your behalf, including monitoring the dark web to ensure you are protected around the clock.
In conclusion, you have the first responsibility to protect yourself from identity thieves. You take up this role by actively taking measures that keep your personal information safe. I already mentioned diligence when hiring accountants and tax professionals. But you can also add studying and reading about this subject so that you know all patterns criminals use to steal personal information. With that said, we provide accounting, bookkeeping, and tax services. We deal with people’s identities all the time, which is why we understand the importance of this subject – you should value it too for your safety.
If you require any of the mentioned services, contact my team and talk to one of us; we will assist you. You can also follow us on our social media channels for prompt updates about this subject and many others.
Frequently Asked Questions
- What is the best defense against identity theft?
The best protection is being proactive; taking the first steps on your own. For example, ensuring that you destroy all receipts with personal information before throwing them away or verifying all incoming emails claiming to be from your bank. Finally, you can also get insurance products for identity theft protection.
- How can I find out if someone is using my identity?
In most cases, you won’t find out until your bank calls you or when you try to file a return, and the IRS tells you that you already filed it.
- How do I stop my identity from being stolen?
Always protect personal information and use two-step verification on websites you enter personal information. Two-step verification or authentication is used to provide an extra layer of security by asking you to verify yourself twice before accessing a website. For example, when logging into your bank account, you first provide your password, but another pin will be sent to your phone – you won’t access the account unless you enter the pin in your phone.
- How do I check to see if someone is using my Social Security number for free?
The best way to check for free is to go to AnnualCreditReport.com, where you can have your free credit report check. Once you access it, carefully assess it to see if there are suspicious accounts you never opened. If they exist, someone could be using your identity to open accounts.
