Americans Express Rising Concerns About Tax-Related Identity Theft
Recent data from Allstate Identity Protection highlights escalating worries among Americans about the security of their personal information during tax season. The survey underscores the prevalence of tax-related identity theft and the critical role of protective measures.
The central findings reveal that a significant 64% of Americans are concerned that scammers will steal their personal information to file fraudulent returns and pocket the refunds. This concern is well-founded, as a substantial 40% of Allstate Identity Protection’s identity restoration cases occur during tax season, making it a peak period for fraud. “Tax season is prime time for identity theft, with refunds on the line that are often worth thousands,” explains Caroline Slane, senior vice president of business operations at Allstate Identity Protection. “We help people take control before fraud happens and get their life back on track when it does.”
Allstate Identity Protection offers plans starting at $3 per month, providing tax refund guarantees and up to $1 million in reimbursement for identity theft-related costs. These plans also feature a dedicated specialist to assist with identity restoration, credit recovery, and account security. According to the survey, one in five Americans (20%) are more worried about tax-related identity theft compared to previous years, while 44% maintain the same high level of concern. Such anxieties are primarily driven by:
- News about rising tax fraud (43%)
- IRS delays and staffing shortages (42%)
- The increase in AI-powered fraud (42%)
Despite these heightened concerns, a considerable 33% of Americans have taken no proactive steps to protect themselves from tax-related identity theft. Slane advises, “The best way to stay safe is to file early, use an IRS Identity Protection PIN and stay alert. Taking proactive steps now can safeguard your personal information and ensure your tax refund stays in the right hands.”
In terms of priorities, Americans indicate that they would rather face significant financial setbacks, such as losing their wallets, seeing their credit scores drop, or losing their jobs, rather than becoming victims of tax fraud. The risk of identity theft is not merely a tax-time problem, but one of the top identity theft concerns in general. Following these steps is vital if you suspect that your identity has been stolen: physically send in your paper return, complete and forward an Identity Theft Affidavit to inform the IRS of your situation.
