According to an Allstate Insurance survey, nearly two-thirds of people are concerned about scammers using their personal information to file fraudulent tax returns. Tax identity theft occurs when a criminal uses someone’s Social Security information to file a false tax return, aiming to steal the refund.
Resolving tax refund theft can take an average of 22 months, but taxpayers can take proactive steps to protect themselves. Financial experts suggest filing your return as early as possible to limit the time frame fraudsters have to act.
The tax filing deadline for income earned in 2024 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 provide this number on each subsequent tax return. However, taxpayers can also request an IP PIN proactively for added security. Those interested can request an IP PIN on the IRS website and will receive a new one annually by mail.
The internet presents opportunities for scammers, but it doesn’t have to be a vulnerability. Strengthening your internet habits can help prevent fraud.
Ensure your online accounts have strong passwords that are easy to remember but difficult to crack. Always avoid clicking suspicious links if you regularly file online, and consider using anti-virus software.
