IdentityTruth Shares Tips on Avoiding Tax-Related Identity Theft

What Consumers Need to Know to Protect Personal Information

Tax season presents the perfect opportunity for consumers to fall prey to identity thieves seeking to gain access to important financial information. IdentityTruth, the leading provider of a new breed of service to help consumers safeguard their privacy and identity, warns that identity thieves could be lurking and ready to steal personal data.

According to a recent report by MSNBC, identity thieves are actively targeting tax returns. As the use of personal computers to prepare important financial documents for tax filing increases, so has the incidence of fraudulent tax returns. In fact, according to the FTC’s 2008 Consumer Sentinel Network, the incidence of fraudulent tax returns increased 4% from 2007.

“Every day, reports are being released about the growth of identity theft associated with tax information,” said Steven Domenikos, CEO of IdentityTruth. “Identity thieves are actually able to re-route people’s tax returns or file in their name. Given the current economic climate, consumers need to be more vigilant now than ever before.”

IdentityTruth has compiled a list of tips that consumers should keep in mind this tax season.
Beware of calls from the “IRS”: If you receive a phone call from the IRS asking for personal information, hang up because it’s a scam. Fraudsters call asking for your account number and bank routing number to deposit your refund. Armed with that information, they can in fact set up an electronic debit and siphon funds from your account. Contact the IRS Taxpayers Advocates to report it.
The IRS does NOT email taxpayers: You may receive emails pretending to be from the IRS asking for your personal information. This is a scam. Identity thieves use these “phishing” attempts to solicit personal information for future misuse. The IRS does NOT communicate with taxpayers via email. Visit their site for more information.
Don’t use online filing programs: Make sure the tax filing software resides on your desktop. Online filing programs are easily penetrated by identity thieves, and sensitive information could end up on countless other servers.
Protect your desktop: Make sure your computer has the latest antivirus and spyware to protect you from invasion. This is even more critical during tax filling time. Your personal information is always for sale in the hands of identity thieves.
Protect Hard Copies: Keep your personal tax information locked up in a safe place in the event your home is invaded and to prevent loss of the documentation. Shred everything containing sensitive information that you do not plan on keeping.
Tax Preparer and Privacy: Make sure you know your tax preparer or accountant well enough to trust him or her with your personal records. Check with the Better Business Bureau to determine creditability. If you suspect something fishy about the person or place, trust your first impressions.

About IdentityTruth

IdentityTruth is the leading provider of a new breed of service to help consumers safeguard their Privacy and Identity. IdentityTruth’s proprietary technology provides subscribers with advance notice of potential identity fraud so they can take better control to stop it before it becomes costly. IdentityTruth not only detects–but can actually predict–possible problems, and that is what makes IdentityTruth Faster than Fraud™. IdentityTruth is a privately-held, VC-funded company headquartered in Waltham, Massachusetts. Investors include Argonaut Ventures and Stata Venture Partners. For more information, go to www.IdentityTruth.com or call 781-684-1300.

Contacts

Kel & Partners
Meagan J. Ellis, 508-366-2099 x 128
Meagan {at} kelandpartners(.)com