Who Else Is Using Your Identity?

These days it seems like everyone knows someone who has had their credit card hacked, been scammed over the phone or computer.  Even the IRS is grappling with the issue of fraud and identity theft.  According to the IRS, identity theft tax refund fraud is its number one fraud.  This happens when someone steals an individual’s personal information, files a fraudulent tax return using someone else’s social security number and has the refund deposited into their own account.  Often, the victim is unaware of what happened until they try to file their own tax return.

Take measures to protect yourself by following these tips.

1.      Keep documents that contain your social security number (SSN) or individual taxpayer identification number (ITIN) on them in a safe place – do not carry them with you.

2.      Do not give your SSN or ITIN to a business just because they ask for it.

3.      Request your credit report once each year and verify the information in it is accurate.

4.      Make sure your personal computers are protected using firewalls, anti-virus software.

5.      Update your internet passwords regularly and NEVER use the same password across different accounts.

6.      Never give personal information over the phone, internet or mail, unless you have started the contact and know who you are dealing with.

7.      File your tax return as soon as you have all the necessary information to reduce the likelihood of someone else filing under your name first.

By: Honorine M. Campisi, CPA