Tax fraud is rampant throughout the US as fraudsters become more advanced in their techniques for identity theft and hacking into the personal data of their victims. Crooks are even engaging in what’s known as “stolen identity refund fraud,” which involves posing as a legitimate taxpayer in order to obtain an income tax refund from the IRS. Once you’ve been attacked, there’s often little you can do to get your money back or protect the data that’s been stolen. However, there are ways you can avoid being a victim of tax fraud.
Don’t carry tax identity related paperwork. You should never have your Social Security or taxpayer ID card on your person or in your wallet. In addition, avoid carrying other documentation that includes these numbers, such as W-2s, payroll stubs or other documentation.
Be cautious in giving out personal data. Give out your tax identity numbers only to people you trust or others who are acting in an official capacity. Providing your Social Security number to your employer or a bank representative is required for tax purposes.
Safeguard all financial information. If you receive financial paperwork from banks, financial advisors, your employer or other sources, carefully protect these documents. This includes checking or savings account statements, investment information, pay stubs and other data – not just your taxpayer ID numbers.
Run your credit report annually. Many times, you won’t be aware that you’re a victim of tax fraud, as hackers can steal your identity without you being aware of it. Keep tabs on who may be using your Social Security number by checking your credit report frequently; experts in tax fraud investigations suggest doing so every 12 months.
Store personal data in a safe place. Even your home isn’t completely safe, as intruders can take your financial details to steal your identity. Plus, as much as you’d like to trust guests you invite into your home, identity theft can occur. Don’t leave documents laying around for anyone to see. Invest in a fireproof safe to keep your data literally under lock and key.
Protect your online and computer-based information. Account and financial information stored online may be at risk if you haven’t installed proper protective solutions. Use firewalls and anti-virus software, and change online account passwords often.
Only give out personal information under certain circumstances. Never give out your tax or financial related information over the phone unless you have initiated the call. Fraudsters prey on people who believe they’re dealing with an IRS agent or financial advisor, but are really speaking to an impersonator.
It seems that fraudsters will stop at nothing to gain access to personal data and account information in order to steal funds from taxpayers unaware of their schemes. These tips on how to avoid becoming a victim of tax fraud will help protect you, but there are ways to fight back if you’ve been hacked. Talk to a tax fraud investigator in Arizona for advice on how to cease illegal activity and prevent future problems.
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Veriti Consulting LLC provides various fraud and forensic accounting services for individuals and businesses across the United States. To learn more about the tax fraud services we offer click here or call 855.232.4410.
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