Tips: Protect Against Identity Theft During Tax Season

  • Feb 29, 2012

PrivacyGuard, an identity theft and credit management product of the Affinion Security Center, announced today the results of its annual tax and identity theft survey. The survey found that while consumers remain concerned about identity theft, there are some common misconceptions about the risk of preparing and submitting their tax documents, and many are engaging in risky behaviors online that could lead to identity theft.

The Federal Trade Commission's 2010 Consumer Complaint Report, listed tax or wage related fraud as the cause of 15 percent of identity theft claims, higher than credit card fraud, employment fraud, bank fraud, or loan fraud.

Worried About Data Breaches; Careless When it Comes to Online Passwords

PrivacyGuard's survey of 500 people revealed that respondents were aware of the possible risks of sharing personal information during a transaction. 88 percent reported that they worry that the organization they are sharing their personal information with could suffer a data breach. Retailers were chosen overwhelmingly (46 percent) as the least trustworthy institution, followed by credit card companies and government agencies. When a data breach occurs, respondents are more likely (38 percent) to blame the institution that was breached than the thieves that stole the data (34 percent).

Although respondents expressed concern about data breaches, the survey reflected some carelessness among consumers when protecting their account information. Only 31 percent had a unique password for each site they use, which could increase the risk of identity theft.

Leary of Tax Preparers; Taking Risks with Online Tax Submission

Respondents expressed mistrust of their tax preparers, with 53 percent feeling concerned or very concerned about identity theft when choosing a tax preparer. This number is up from 41 percent in 2011.

Postal mail continued to be the most trustworthy of delivery options with most respondents (60 percent) listing it as the most secure way to file their taxes. However, the majority of respondents (53 percent) assumes the risk and submits their taxes online.

Low Awareness of IRS Contact Methods

Respondents have grown increasingly ignorant about the methods the IRS uses to initiate contact with tax payers, with many selecting the wrong option: 40 percent believe the IRS can contact them via email, mail or phone and 4 percent believe that the IRS will contact them through email. The IRS does not initiate contact with taxpayers through email. Last year the survey results showed a similar trend, with 50 percent selecting the email, mail or phone option.

"Americans have become increasingly concerned about the risk of identity theft over the past few years," said Christine El Eris, Director of Product for PrivacyGuard. "However, taxpayers need to be aware of the unique risks they face during tax season."

PrivacyGuard would like to help educate consumers with the following tips on how to prevent identity theft during tax season:

When Preparing Your Return

1. Be Aware of Suspicious Emails and Phone Calls Regarding Your Tax Refund, Tax Filing or Any Stimulus Checks – Check the IRS website for tips on how to spot scammers and thieves posing as the IRS and a list of known phishes.

2. Be Diligent When Choosing Your Tax Preparers – Ensure that you are working with a credible firm and be extra cautious about new or seasonal offices. Check the IRS website for more tips on how to choose a tax preparer.

3. Secure your computer – If you file taxes electronically, be sure to install updated firewalls and anti-spyware protection to help keep your personal data out of the hands of thieves.

During and After Filing

1. Mail securely – If you file via mail, be sure to mail your return directly from the post office – do not leave your tax return in your unlocked mailbox or at the curb for pickup by your local mail carrier. Your personal information will be vulnerable until it is retrieved by the postal carrier. It is wise to send tax information by first class mail with a tracking number.

2. Safeguard Sensitive Information in Home and Outside – Frequently the greatest threat to personal information comes from service providers or in-home workers or acquaintances. Keep paperwork in a safe location. When carrying this information out of the house, be sure to keep it on you or make sure if you leave it in the car, it is not visible.

3. Micro-Shred Your Documents – Cross-cut shredders just don't "cut" it these days. Use a micro-cut shredder for maximum security. The shred size on micro-cut machines is much smaller – documents are literally turned into dust, offering the highest level of security. And since even a seven year- old receipt can be used by a thief, shredding is still one of the simplest ways to prevent identity theft.

Featured

  • New Report Reveals Top Trends Transforming Access Controller Technology

    Mercury Security, a provider in access control hardware and open platform solutions, has published its Trends in Access Controllers Report, based on a survey of over 450 security professionals across North America and Europe. The findings highlight the controller’s vital role in a physical access control system (PACS), where the device not only enforces access policies but also connects with readers to verify user credentials—ranging from ID badges to biometrics and mobile identities. With 72% of respondents identifying the controller as a critical or important factor in PACS design, the report underscores how the choice of controller platform has become a strategic decision for today’s security leaders. Read Now

  • Overwhelming Majority of CISOs Anticipate Surge in Cyber Attacks Over the Next Three Years

    An overwhelming 98% of chief information security officers (CISOs) expect a surge in cyber attacks over the next three years as organizations face an increasingly complex and artificial intelligence (AI)-driven digital threat landscape. This is according to new research conducted among 300 CISOs, chief information officers (CIOs), and senior IT professionals by CSC1, the leading provider of enterprise-class domain and domain name system (DNS) security. Read Now

  • ASIS International Introduces New ANSI-Approved Investigations Standard

    • Guard Services

  • Cloud Security Alliance Brings AI-Assisted Auditing to Cloud Computing

    The Cloud Security Alliance (CSA), the world’s leading organization dedicated to defining standards, certifications, and best practices to help ensure a secure cloud computing environment, today introduced an innovative addition to its suite of Security, Trust, Assurance and Risk (STAR) Registry assessments with the launch of Valid-AI-ted, an AI-powered, automated validation system. The new tool provides an automated quality check of assurance information of STAR Level 1 self-assessments using state-of-the-art LLM technology. Read Now

  • Report: Nearly 1 in 5 Healthcare Leaders Say Cyberattacks Have Impacted Patient Care

    Omega Systems, a provider of managed IT and security services, today released new research that reveals the growing impact of cybersecurity challenges on leading healthcare organizations and patient safety. According to the 2025 Healthcare IT Landscape Report, 19% of healthcare leaders say a cyberattack has already disrupted patient care, and more than half (52%) believe a fatal cyber-related incident is inevitable within the next five years. Read Now

Most   Popular

New Products

  • Mobile Safe Shield

    Mobile Safe Shield

    SafeWood Designs, Inc., a manufacturer of patented bullet resistant products, is excited to announce the launch of the Mobile Safe Shield. The Mobile Safe Shield is a moveable bullet resistant shield that provides protection in the event of an assailant and supplies cover in the event of an active shooter. With a heavy-duty steel frame, quality castor wheels, and bullet resistant core, the Mobile Safe Shield is a perfect addition to any guard station, security desks, courthouses, police stations, schools, office spaces and more. The Mobile Safe Shield is incredibly customizable. Bullet resistant materials are available in UL 752 Levels 1 through 8 and include glass, white board, tack board, veneer, and plastic laminate. Flexibility in bullet resistant materials allows for the Mobile Safe Shield to blend more with current interior décor for a seamless design aesthetic. Optional custom paint colors are also available for the steel frame.

  • HD2055 Modular Barricade

    Delta Scientific’s electric HD2055 modular shallow foundation barricade is tested to ASTM M50/P1 with negative penetration from the vehicle upon impact. With a shallow foundation of only 24 inches, the HD2055 can be installed without worrying about buried power lines and other below grade obstructions. The modular make-up of the barrier also allows you to cover wider roadways by adding additional modules to the system. The HD2055 boasts an Emergency Fast Operation of 1.5 seconds giving the guard ample time to deploy under a high threat situation.

  • ResponderLink

    ResponderLink

    Shooter Detection Systems (SDS), an Alarm.com company and a global leader in gunshot detection solutions, has introduced ResponderLink, a groundbreaking new 911 notification service for gunshot events. ResponderLink completes the circle from detection to 911 notification to first responder awareness, giving law enforcement enhanced situational intelligence they urgently need to save lives. Integrating SDS’s proven gunshot detection system with Noonlight’s SendPolice platform, ResponderLink is the first solution to automatically deliver real-time gunshot detection data to 911 call centers and first responders. When shots are detected, the 911 dispatching center, also known as the Public Safety Answering Point or PSAP, is contacted based on the gunfire location, enabling faster initiation of life-saving emergency protocols.