Tax identity theft has been on the rise since 2008. This type of fraud happens when a criminal steals a victim’s identity, files a bogus tax return in their name (before the victim files their true tax return) and then collects a refund from the Internal Revenue Service (IRS).
All the criminal needs is access to the Internet, a stolen Social Security number (SSN) and the date of birth associated with that SSN. The unsuspecting victim will only discover that they have been defrauded after they attempt to file their true tax return and are unable to do so because a fraudulent one has already been filed by the criminal.
Your tax return could also be affected if another person uses your SSN for employment. For example, if an employer reports a fraudster’s income under your SSN, then your return will be flagged for unreported wages.
How to Protect Yourself
The best way to protect yourself from tax identity theft is to file your taxes as early as possible. You can only file one tax return per SSN, so the IRS will reject any tax returns that are filed later.
In addition, here are some other ways to protect yourself:
Keep your SSN private.
Use strong passwords for all financial websites.
Protect your computer against spam and viruses.
Keep your financial information private.
Beware of phishing and related scams.
Shred printed bank and tax documents when you no longer need them.
Visit our Fraud Protection Center for more tips.
Reporting Identity Theft
If you are a victim of tax-related identity theft, it’s important to do the following:
Submit an Identity Theft Affidavit through IRS.gov (Form 14039)
Continue to file your taxes. If your electronic submission is rejected, use a paper form and attach the Identity Theft Affidavit.
Respond promptly to IRS correspondence regarding the fraud.
Place a fraud alert with at least one of the three major credit bureaus (Experian, Equifax or TransUnion).
Consider freezing your credit with each of the three credit bureaus.
Use credit monitoring and identity protection services to keep an eye out for fraudulent accounts and other signs of fraud.
FraudScout Helps Keep Your Information Safe
We’ve partnered with CyberScout® to help protect you against hackers and thieves by providing identity management, credit monitoring and cyber security services. Learn more about our FraudScout® Fraud and Credit Monitoring Services.
Call Us If You Need Help
If you have any questions, need assistance or see any suspicious activity on your account, our representatives are more than happy to help. Call our Contact Center at 904-777-6000 or 800-445-6289, Monday through Saturday, from 7:00 a.m. to 7:00 p.m., excluding holidays.