Monday, March 02, 2015
According to the U.S. Treasury Department, 1.6 million Americans fell victim to tax identity theft in the first half of 2013 alone. The Government Accountability Office estimates that identity thieves stole $5.2 billion in 2013 as a result of this fraud. With Tax Day quickly approaching, the National Consumers League (NCL) urges taxpayers to be on the lookout for fraud.“While most Americans dread Tax Day, fraudsters increasingly are cashing in with lucrative tax identity fraud scams,” says John Breyault, NCL vice president of public policy, telecommunications and fraud. “What makes this scam particularly pernicious is the ease with which fraudsters can steal personal information, file a false tax claim, and then turn the fraudulent refund into untraceable cash before the consumer realizes they have been a victim of a scam.”
Consumers receive W-2 forms from their employer by the end of January, but often wait to file their taxes closer to Tax Day on April 15. Since the IRS aims to process refunds quickly, fraudulent claims often go undetected.
The NCL recommends the following to avoid becoming a victim of tax identity fraud.
- File your taxes as early as possible during tax season. Scammers depend on the fact that many taxpayers wait until late in tax-filing season to file. Filing early reduces the risk that a tax ID thief will be able to use your personal information to file fraudulently ahead of you.
- Check your annual Social Security Administration earnings statement carefully. If there are earnings listed that you don’t recognize, someone else could be using your identity to obtain employment.
- Review your credit report for any suspicious activity.
- Never give out personal information, such as your SSN, date of birth, or bank account information in response to unsolicited emails, postal mail, over the phone or via text message, social media or other platform.
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