How To Prevent Tax-Refund Id Fraud?

Any theft related to tax refund or tax ID is something to beware of. It is extremely important to protect any kind of tax ID, be it the personal SSN, or EIN for non-profit and profitable organizations. Theft of such valuable information can prove to be costly. Such frauds tend to be more active during the tax return filing season. Thus it is important to take necessary precautions to prevent falling prey to such frauds.

What is tax return fraud or tax ID theft?

In both these cases, scammers try to extract your tax ID and other financial information. They then use it to file tax return in your name, and keep the returned amount for themselves. Tax refund identity theft is quite common and the scammed victims only realize it when they try to file their tax returns. Similarly theft of your tax ID can grant thieves access to your finances including bank accounts and credit cards, causing you serious financial losses.

Tips to prevent tax refund fraud and tax ID theft:

  1. Regularly monitor your bank accounts

One good way to keep track of your finances is by keeping a watchful eye on all your bank accounts and credit information. This alerts you if anything ever goes awry.

  1. Monitor your tax account on official website of IRS

IRS has created an online tool that helps you monitor your federal income tax account. This comes handy to watch out for any suspicious activity that might take place, particularly during the tax filing season. Moreover registering for this service makes you better immune to fraudulent activities.

  1. Beware of phishing and scam calls

Be cautious of scam calls asking for your tax ID and other financial info. If you receive similar suspicious emails, forward it to phishing@irs.gov and delete it.

  1. Keep your computer safe

Always keep your firewalls, antivirus and anti-spyware updated.