According to an Allstate Insurance survey, nearly two-thirds of people worry about scammers stealing their personal information to file a fraudulent tax return. Tax identity theft occurs when someone files a fraudulent tax return using another person’s social security information, aiming to collect the refund.
Tax refund theft can take an average of 22 months to resolve. Fortunately, taxpayers can take preventative measures to safeguard themselves from becoming victims. Financial experts advise filing your tax return as early as possible to limit the time a fraudster has to file a return in your name. The deadline to file a tax return for the 2024 tax year is April 15.
The Internal Revenue Service (IRS) also recommends obtaining an Identity Protection PIN (IP PIN). This six-digit number, issued by the IRS, is attached to your tax return. Victims of tax-related fraud must include this number on each subsequent return. However, taxpayers can proactively request an IP PIN for added security. You can request an IP PIN on the IRS website and will receive a new one annually via mail.
The internet can be a valuable tool, but it can also be a scammer’s playground. However, you can protect yourself. Employ strong passwords that are easy to remember but difficult to hack to maintain the security of your online accounts. If you regularly file your taxes online, avoid clicking suspicious links and consider using antivirus software for added protection.
