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The documents taxpayers send and receive this time of year contain all the information identity thieves look for. Your name, address, bank and credit account information and, most importantly, your Social Security number. For the identity thief, tax time provides a treasure chest of opportunity. The Identity Theft Resource Center wants to remind businesses and consumers to be especially careful handling tax-related documents.
Here’s how to minimize the chances of identity theft:
Paper security
Keep tax paperwork in a safe, locked location. Financial documents don’t belong in a briefcase that can be lost or stolen or left unguarded in your car for even a few minutes.
Document Disposal
Put papers you no longer need through a cross-cut shredder. Receipts, papers with credit card account and Social Security numbers (such as health benefit payment and income reporting forms), and loan documents, all contain information a thief can convert into a new account in your name. Even a seven-year old receipt can be used by a thief.
Computer Security
If your computer is linked to the internet, make sure to have updated firewall software to protect you from invasion. Since many taxpayers now file online, or store financial information on their computers, it is vitally important to install updated security programs.
Mail Theft Prevention
During tax season, be sure to retrieve your postal mail every day. Uncollected mail is an invitation to an identity thief. When mailing your tax documents, always try to take them directly to the Post office, dropping them in a box inside the building. If you use an outside Post Office box, it’s best to drop your mail before the last pick-up of the day. Leaving mail overnight gives a thief more opportunity to steal mail. Don’t leave tax mail in an outgoing box at work, or in an unlocked box for pickup. Unguarded mail is a theft waiting to happen.
Tax Preparers and Personal Privacy
Be selective about who works on your taxes. Check out companies with the Better Business Bureau, especially new or seasonal offices. Ask how your information will be stored, what computer security software is used, and if the person working on your taxes has undergone a thorough background screening. Trust your impressions. Do you see personal papers displayed on desks? If you feel uncomfortable or doubt the firm’s commitment to protecting your privacy, take your business elsewhere. Avoid doing financial business in supermarket concession booths, where others may hear or see your transaction. Those mini offices are not soundproof — and criminals have been observed watching transactions with telescopic lenses. Go elsewhere.
Tax Time Scams
If you receive an email asking for your SSN or bank information, delete it or send it to the FTC at spam@uce.gov for investigation. The IRS does not send emails stating you are being electronically audited. They also don’t contact you by email about refunds which require you to provide bank information. If you have any questions about an email you received from the IRS or a letter that sounds suspicious immediately call the IRS Taxpayers Advocates at 877-777-4778.
Employment Identity Theft
Identity theft goes beyond the well-known forms of financial fraud. Sometimes identity thieves use your identity to get a job. They may be employed and using your Social Security number — or even your child’s SSN. In these situations, the IRS may send a notice indicating that more than one person is using a SSN. If this happens, immediately contact the IRS Taxpayer Advocates or the Identity Theft Resource Center for assistance. While no one wants to learn they are an identity theft victim, this form of identity theft is sometimes easier to correct than other identity related crimes.
Identity Theft Resource Center
IRS Taxpayer Advocates: 1-877-777-4778
US Federal Trade Commission [February 27, 2006]
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