Fraud

In 2014, almost 18 million people in the United States were victims of identity theft. Two-thirds of them said they suffered a direct financial loss because of it, according to the Bureau of Justice Statistics (BJS).

During tax season, your personal information is particularly vulnerable. After all, your Social Security number (SSN) is on W-2 forms, your tax return, and other financial documents being sent through the mail, transported to accountants and otherwise used to complete your annual IRS ritual. So it’s a good time of the year to be especially vigilant.

To help, here are four things you should know about identity theft — from what thieves can do to how you can help protect yourself — from the Internal Revenue Service (IRS) and Federal Trade Commission:

1. Thieves won’t just open new accounts — they can (and will) file “your” taxes. Someone with access to your data could file a fraudulent tax return and claim a refund under your name. You may not know until you go to file your own return and it comes back rejected. If it happens, call the IRS Identity Protection Specialized Unit at 1-800-908-4490.
2. Scammers will try to reel you in. Ever get a call or email from someone asking you to verify your account information or SSN? Legitimate organizations, especially the IRS, won’t do that. If there’s a problem with your tax return, the IRS will contact you by mail.
3. Technology can help. If you send tax forms or other sensitive documents via email, password-protect them. Furthermore, security software can help keep your data safe, and password generators will help ensure your various login credentials aren’t easy for a thief to figure out. As for analog documents, such as tax records, store them in a locked desk or filing cabinet and don’t send them through the mail unless it’s certified.
4. Reporting the crime is a must. Ninety percent of identity-theft victims don’t alert the police, says BJS. But you should. A police report can help prove to financial institutions and businesses that someone stole your identity. It also allows you to place an extended fraud alert on your credit report, get inaccurate information removed, stop debt collectors from reporting fraudulent accounts and more. Because once criminals have your information, they may use it to perpetuate many types of fraud.

Protecting your identity is, of course, something to be mindful of all year round – not just during tax season. For more tips, visit IdentityTheft.gov. 

I picked up my cell phone after a ring or two, even though I did not recognize the number.

“Is this Karen?” the young woman’s voice said. I was about to answer when she spoke smoothly and quickly, “this call may be recorded for quality assurance.”

“Who is this?” I asked – immediately suspicious.

“I have some important information to discuss with you but I need you to verify your date of birth.” Smelling a scam, I hung up.

A day later, and the same number calls again. Then again. Finally, I answer, and it is the same young woman. “Miss, there is no way I am going to give a stranger any personal information. Unless you can tell me what this is all about, stop calling.”

“This is important, but I can’t talk with you about it until I verify that you are the Karen O’Connor, we are trying to find. Can you tell me your date of birth?”

“No!” I say, incredulously. “How about the last four of your social security number,” she responds.

“Put me in touch with your supervisor,” I insist. Much to my surprise, she agrees. After a moment on hold, I hear a male voice come onto the phone.

“This is Steve, can I help you?”

“Yes, you can tell me who you are, what company you work for, and why you are calling me and asking for personal information?”

Steve explained that his firm was a collection agency, and there was a Karen O’Connor out there that owed a significant amount in school loans. I was not that person. Steve also tried to get me to verify personal information, and I just as adamantly refused.

“Steve,” I objected, “I am simply not going to tell a stranger anything personal – for heaven’s sake, you are doing exactly what identity thieves do!”

Believe it or not, Steve agreed to take my number off the list of places to call looking for my indebted twin. He had a job to do, and while I do not think this was a scam, even an otherwise legitimate company may not be as careful with your information as you would expect. In our office, all client personal information is stored securely with very limited access. For all I know, this collection agency might leave my information laying around on their desk on sticky notes.

Many homeowner’s insurance carriers offer identity theft insurance. Check your policy, or ask your insurance agent. Bottom line – never share information of a personal nature with a stranger. Ever.