Protecting Your Identity This Tax Season: A Professional Guide
Tax season is often a time of high stress, but the last thing you should have to worry about is your identity being compromised. Unfortunately, this period is a prime opportunity for identity thieves because your tax forms, such as a W-2, contain a treasure trove of sensitive data. From Social Security numbers to financial account details, this information is exactly what criminals need to commit tax identity theft or open fraudulent accounts in your name.
As an insurance professional, I’ve seen how devastating the fallout from identity theft can be. To help you stay secure, I’ve compiled five essential tips to safeguard your information during this critical time of year.
1. Understand How the IRS Actually Communicates
One of the most common threats is the impersonation scheme. Thieves often pretend to represent the IRS via email, social media, or phone calls to trick you into revealing sensitive data.
It is vital to remember that the IRS does not contact taxpayers through digital channels like email or social media. If you receive an electronic message regarding your taxes, it is likely fraudulent. If you are ever unsure about a piece of physical mail, visit IRS.gov to verify its authenticity before responding.
2. Monitor Your Physical Mailbox
During tax season, your mailbox becomes a high-value target because of the physical tax forms being delivered. If you notice you aren’t receiving expected bills or tax documents, take it as a serious warning sign that a thief might be stealing your mail. To eliminate this risk, I recommend requesting electronic forms from your employer and financial institutions whenever possible.
3. Strengthen Your Digital Defenses with Better Passwords
When filing your returns online, your first line of defense is a robust password. The IRS recommends moving away from simple words and instead using long-phrase passwords that incorporate a series of numbers and special characters. This makes it significantly harder for identity thieves to breach your filing accounts.
4. Use Only Secure Internet Connections
If you file electronically, never use public Wi-Fi. Public networks are often unsecured, meaning other people on the network may be able to see the personal and financial information you are entering. Always use a private, secure Wi-Fi connection when accessing financial accounts or tax documents.
5. Vet Your Tax Preparer Thoroughly
Thieves may pose as legitimate tax preparers to steal your information right from the source. Before handing over your documents, research your accountant to ensure they are ethical and legitimate. You can verify their credentials and qualifications through the official IRS tax preparer directory.
Proactive Protection
Following these steps can significantly minimize your risk. However, because threats exist year-round, you may also want to consider an identity theft protection plan. For example, our identity restoration plans start as low as $3 per month for individuals, providing peace of mind and professional help if your information is ever compromised.
