March 19, 2007
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NEWS: Tax Time is Open Season for ID TheftWith the specter of April 15 looming down on them, millions of Americans will scramble to prepare their taxes in a timely manner over the next few weeks. It's a chaotic and stressful time for many accountants and consumers, but there's another seriously alarming fact to consider – that many identity thieves look at this time of year as pretty much being open season for crime. Last year, some 15 million Americans fell victim to some form of identity theft – a full 50% increase since 2003, when it was last surveyed, says Gartner 2006 Identity Theft Survey results.
It's not hard to see why. A printed tax return is a gold mine for scam artists: it's got your full name, address, date of birth, and, most importantly, your social security number on it. Basically, that's everything a seasoned crook need to start opening up cards in your name and taking your credit for a ride! Sadly, there are people who just throw sensitive paperwork away whole in the trash, or just tear it up. Neither of these things will stop scam artists – they have no qualms about digging through trash, and a roll of scotch tape is all they need to reassemble your mail.
Luckily, it's not impossible, or even that hard, to quash your personal risk of identity theft, especially with tax paperwork, which is relatively easy to safeguard. First of all, keep your saved documents in a secure location – a locked filing cabinet is best. Go to your local office supply store, and invest in a cross-cut shredder. It should cost less than $40, and nothing protects your discarded documents better. Furthermore, if you are filing your taxes online, be sure that your antivirus, anti-adware, and firewall protection are up to date. And keep your senses about you: there have been a few phishing scams that disguise themselves as e-mails from the IRS inquiring about personal tax information. The IRS doesn't do this – it's a scam. Calling the IRS's toll-free information line to verify any communications you may have received is well worth your time, at this time of year!