Nobody wants their identity stolen, especially when it comes to putting their hard-earned money at risk. Aside from giving your accountant additional hurdles to get your taxes in order, tax identity theft makes you vulnerable to losing your refund or convincing the Internal Revenue Service (IRS) that you do not owe additional taxes. Here’s what you should know about this type of crime, including ways to protect yourself going forward.

What Is Tax Identity Theft?

In short, tax identity theft is when somebody steals your personal information to file a tax return. Thieves almost always use your Social Security number to claim a fraudulent return because the IRS uses it to identify taxpayers. Your personal information can be acquired through weak passwords, phishing emails, and decrypted websites, although scammers are infamous for changing tactics until they find a scheme that’s most effective.

Popular Scams

The two most frequently used scams are phishing and robocalls. Each scam attempts to seek access to your bank account, passwords, and other sensitive information through emails and pre-recorded phone calls. Scammers often pose as trusted sources like the IRS, your financial institution, or other government agencies. However, these sources will never request your personal or financial details through these methods. To lower your risk of having your personal information stolen, never open attachments or links from email addresses you’re not familiar with and don’t disclose sensitive information over the phone.

How You Can Protect Yourself

While it’s impossible to prevent tax identity theft completely, getting one step ahead of a thief prevents you from becoming a victim. Keep your Social Security and Individual Taxpayer Identification Number out of view in public, leaving your cards or any other documents with your SSN or ITIN secured at home. Consult with your accountant for additional ideas to lower your risk of identity theft. 

It’s equally important to protect your online identity, as well. Protect your computer’s privacy with firewalls and antivirus software to shield your network from cyber attackers and malware. Create unique passwords for websites you frequent using a combination of numbers, letters, and symbols. Many email providers, social media sites, and financial institutions offer two-factor authentication as a second form of identification to prevent attackers from accessing sensitive information.

If you’re concerned about your financial future, contact The Callen Accounting Group, PLLC, to lend a helping hand. The Twin Lakes-based firm strives to meet every client’s needs with its extensive range of accounting services, including bookkeeping, cash flow management, and financial statement analysis. To get started on your financial goals, visit their website or call (870) 425-6066 to make an appointment with one of their accountants.