How to Avoid Identity Theft During Tax Season
According to an Allstate Insurance survey, almost two-thirds of people worry about scammers stealing their personal information to file a fraudulent tax return. Unfortunately, this is a valid concern.
Identity theft related to taxes happens when someone uses your Social Security number to file a fake tax return in your name, hoping to get ahold of the money from the refund. If this happens to you, it can take an average of 22 months to resolve. However, there are steps you can take to prevent this from happening in the first place.
One key recommendation from financial experts is to file your tax return as early as possible. This reduces the time window that a fraudster has to file a fraudulent return using your information. The deadline to file your 2024 taxes is April 15.
The Internal Revenue Service (IRS) also suggests getting an Identity Protection PIN (IP PIN). This is a unique six-digit number the IRS issues to attach to your tax return. If you’ve been a victim of tax-related fraud, you’re required to use this number on all future tax returns. Even if you haven’t been a victim, you can proactively request an IP PIN for an added layer of security.
You can request an IP PIN directly through the IRS website. You’ll then receive a new one in the mail each year.
Because the internet can be a haven for scammers, maintaining healthy online habits is crucial in preventing fraud. Make sure you maintain strong, unique passwords for all your online accounts. If you regularly e-file your taxes, always avoid clicking on suspicious links, and consider investing in anti-virus software to protect your devices.
