Tax season can be challenging as there are many tasks to complete, such as e-filing your return to the IRS. However, completing your tax return is only the first step, as you also need to protect yourself from identity theft. Unfortunately, cybercriminals may try to steal your identity to gain access to your tax refund, which is why this remains a significant problem.
While it is wise to consider an identity theft protection package, there are practical steps you can take to safeguard your tax return. Some of these steps are based on common sense, while others make it more difficult for criminals to access your details. Unfortunately, it is impossible to guarantee that you will never become a victim of identity theft. If it does happen, and it is connected to your personal tax affairs, it could be a significant problem.
In addition to the stress involved, you may also lose your tax refund to scammers. Therefore, it is crucial to follow these tips to protect your tax refund as much as possible.
Social Security
Your Social Security number, or SSN, is one of the most valuable information for cybercriminals. They can use it to commit fraud, including stealing your tax refund or opening credit accounts in your name.
The IRS and state tax authorities keep your SSN on file, so if someone else gets hold of it, it could lead to severe problems, such as identity theft or financial loss. It is essential to keep your Social Security card safe and secure and avoid carrying it in your wallet or purse. R
remember, prevention is critical when safeguarding your personal information and preventing identity theft.
Correct details
If you’ve been the victim of tax-related ID theft, it can often be some time after the event before you realize it. You may find that the IRS contacts you about a potentially fraudulent claim using your Social Security number rather than the other way around.
It’s prudent to make sure that you pick through all of the details in your Social Security Administration earnings statement every year to ensure that the information is correct.
Perfect passwords
While there’s no such thing as a perfect password, it’s worth taking your time to create a solid collection of login info for all your different online accounts. Try investing in a password manager package, which can help ensure that your passwords are as good as possible. The usefulness of a password manager should not be underestimated.
Deleting old data
If you're getting tired of your old PC or smartphone and figure it's time for an update, then make sure you spend just as much time getting rid of any personal information on the outgoing hardware. Even if you've got a computer so old you don't think it'll be of any use to anyone, it still needs to be disposed of properly.
It might seem tedious to wipe disks and system software, but this task is worthwhile. Even if you prefer to smash old hard disks into lots of pieces, the main thing is to ensure there's nothing left for the cybercriminal to use.
Paper trail
The same goes for conventional paper documents; getting a decent document shredder is a great idea.
Watch out for the cheaper models that don't shred quite as efficiently as you might hope. You need to ensure that any paperwork with things like bank account numbers and Social Security digits can be finely shredded, so there's nothing a cybercriminal could piece back together.
Accounts help
If you're not very organized, hate doing your own accounts, or prefer to hire a tax professional, then make sure they're legitimate and have a proven track record. It's no good signing up for a friend of a friend's self-taught accountant if they're not entirely sure what they're doing.
You're best off getting help from a certified and fully qualified expert with a good reputation recommended by family, friends, or fellow work colleagues. Don't just give someone the benefit of the doubt, especially when it comes to sharing things like your Social Security number or other sensitive personal information.
Junk removal
Try getting rid of or reducing so-called junk mail that can pile up in mailboxes. These mailers might come in the shape of regular mail, including those endless credit card offers.
As for old-school posts, try opting out of direct mailing campaigns by heading to DMAchoice.org, which not only gives you tips on how to limit the amount of unwanted mail you get but also offers advice on what to look out for in terms of potential threats. If you want less real or virtual mail, this can be a great place to start.
For email, it’s often simply a case of unsubscribing from mailing lists.
Beating tax refund theft
While the IRS is getting better at tracking cybercriminals and reducing tax refund fraud, it is still a severe issue. To help minimize the threat, it's always a good idea to try to file early.
Suppose you've got all of your paperwork in hand. In that case, you may as well send the IRS your tax information rather than leaving it later and risk hackers getting hold of your Social Security number and other personal information.
Remember also that the IRS will not send you emails or calls asking you to share personal tax information, so be sure not to hand over details like your Social Security number or anything else of a personal nature in this way.
Thankfully, help is at hand if you suspect tax-related fraud has been happening concerning your affairs. First, contact the IRS Identity Protection Specialized Unit by calling 800-908-4490 and explaining your issue. They have teams of experts who can help resolve the problem, so the sooner you contact them, the better.
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