Every American warned over ‘tax info cyber-theft’ – here’s what you need to do

TAX-RELATED identity theft can affect anyone – here’s how to protect yourself.

Every year, tens of thousands of Americans fall victim to tax identity theft.

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And while it’s less common than other types of identity theft, it’s no less impactful.

What is tax identity theft?

This type of fraudulent activity refers to someone using your personal information, including your Social Security number (SSN), to file a tax return.

And once a person has your SSN, they could also do a lot more than just claim a fraudulent refund.

They are also able to collect benefits and income, commit crimes, make purchases, set up websites, and buy residences, all in your name.

How does tax identity theft work?

Identity thieves typically will file fraudulent tax returns early on in the season.

Then they get tax refunds electronically deposited into their accounts, or have the refunds mailed to steal the physical checks, according to Experian.

How can I know if I’ve been impacted?

One way to know if you’re a victim of tax identity theft is to try to file a tax return.

If the IRS rejects your return, it could be because it has been flagged as a duplicate in their system, meaning someone else filed with your information.

Fortunately, once you get the issue sorted with the government, you can still file taxes and receive your refund.

Another way to know if you’re information has been stolen is if you get a letter from the IRS about a tax return you didn’t file.

How can I protect myself?

Starting in 2021, the IRS lets anyone request an Identity Protection PIN (IP PIN) to help protect your electronic or paper tax forms.

Tax filers are advised to use a PIN and to never share it – the IRS will automatically reject tax returns that have your information but don’t input the correct PIN.

Tax filers can also lock or freeze their credit reports to help keep identity thieves from using their information to open new credit accounts.

Furthermore, filers have the option to sign up for identity theft protection programs that can alert them if their information is compromised.

If you believe someone is using your Social Security number to get your tax refund, or anything else, contact the IRS online or call 1-800-908-4490. 

This post first appeared on Thesun.co.uk