To coincide with Tax Identity Theft Awareness Week, the AARP Fraud Watch Network launches an education effort to help people protect themselves from tax scams, releasing a new video (see below), a tip sheet and encouraging people to take advantage of AARP’s free tax preparation services. According to the Federal Trade Commission (FTC), Montana tied with Kentucky at spot 40 in ID theft complaints.
Many taxpayers are putting themselves at greater risk of tax identity theft according to a recent national study released by the AARP Fraud Watch Network in conjunction with the education campaign to help prevent scammers from stealing hard-earned money.
According to the FTC, Montana received over 500 complaints in 2013. In this identity theft scheme, scammers electronically file a tax return under someone else’s name to collect their tax refund. All they need is a birth date and Social Security number, and many taxpayers make their personal information easy pickings by:
- Failing to lock their mailbox: Almost six in ten (59%) Americans do not regularly lock their mailbox, which leaves them open to a criminal stealing bills, tax forms and other documents that contain personal information.
- Leaving valuables exposed: Over half (54%) of Americans 18-49 have left at least one valuable personal item in their car in the last week (e.g., a purse/wallet, pay-stub, laptop) that could be used to steal their identity.
- Failing to destroy personal information: More than one in five (21%) Americans say they never shred any of the personal documents that could be used to steal their identity.
Tips on how to protect yourself and your family from tax identity theft include:
- Do mail tax returns as early in the tax season as possible before the cons beat you
- Don’t give out personal information unless you know who’s asking for it and why they need it.
- Shred personal and financial documents.
- Know your tax preparer.
For these and other fraud prevention tips, visit aarp.org/fraudwatchnetwork. For additional help, contact the IRS Identity Protection Specialized Unit at 800-908-4490 and visit irs.gov/identitytheft.