Protect Yourself from Identity Theft and Tax Fraud
The Internal Revenue Service (IRS) estimates that over $1.6 billion was lost to identity theft and tax fraud in 2019. In fact, identity theft is the most common type of tax fraud. This is why it’s important to know how to protect yourself from becoming a victim of identity theft and tax fraud. Let’s look at how identity thieves are stealing your personal information and what you can do to prevent it.
How Identity Thieves Steal Your Information
Identity thieves use a variety of methods to steal your personal information, including phishing emails, data breaches, and stealing your mail.
Phishing emails are fraudulent emails that appear legitimate and ask for your personal information such as Social Security numbers, bank account numbers, etc. Be sure to check the spelling of the sender’s email address as well as suspicious-looking links before clicking on any links or providing any information.
Data breaches occur when hackers gain access to company databases containing sensitive customer data.
To protect yourself from data breaches, be sure to frequently monitor your credit report for any suspicious activity or changes in your accounts. You should also be wary of giving out too much personal information online or on social media as this can make you vulnerable to identity theft.
Finally, make sure you keep an eye on your mailbox and shred any documents that contain sensitive information before disposing of them.
What You Can Do To Protect Yourself From Identity Theft And Tax Fraud
The best way to protect yourself from becoming a victim of identity theft and tax fraud is by taking preventative measures such as using strong passwords that are unique for each website you visit, using two-factor authentication where available, monitoring your credit report regularly, and keeping an eye out for suspicious activity in all your accounts.
Additionally, file taxes early so that if someone does manage to steal your information they won’t be able to file taxes in your name before you do. Finally, make sure you always use a secure internet connection when filing taxes online so that criminals cannot intercept any sensitive data being sent over the web.
Identity theft is one of the most common forms of tax fraud these days which makes it incredibly important for taxpayers to take measures to protect themselves from becoming victims of this crime.
Taking preventative measures such as using strong passwords and two-factor authentication, monitoring credit reports regularly for suspicious activity or changes in accounts, and filing taxes early before someone else does so in their name can help taxpayers avoid becoming victims of identity theft and tax fraud. By following these steps taxpayers can rest assured knowing their confidential data will remain safe throughout the entire filing process!
Contact us so we can assist you in filing a safe, and secure tax return.
This information is not intended as legal or tax advice. Cowdery Tax and its representatives does not offer legal or tax advice. We offer services for business bookkeeping, payroll, tax payments, and personal tax filings. We share information that is publicly available. Tax laws may change with or without notice that may alter or change the information contained in this publication.
