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16 Ways You May Be Exposing Yourself to Fraud

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If you think filing your taxes is a nuisance now, imagine doing it after a scammer steals your identity or your tax return check. While electronic tax filing has eased the task of preparing and filing tax returns, the convenience of electronic filing has also created a channel for the growing number of criminals who commit tax-related identity theft, a crime that has continued to rise since 2011, when the IRS identified more than 1 million incidents. Consider these tips for maximizing your safety this tax season.

  1. Vet your tax preparation professional
    Be selective about who prepares your taxes, and be especially weary of seasonal offices that pop up during tax time and online tax preparers, either of whom may be scammers set up to steal your Social Security number and other account information. The IRS requires individuals or businesses that prepare and file 11 or more returns a year to file them electronically using the IRS e-file program—many of whom elect to be listed in the Authorized IRS e-file Provider database. While inclusion in the database doesn’t constitute an endorsement by the IRS, it does guarantee that any listed professional has passed a rigorous screening process, which includes verifying identifying information, such as the tax preparer’s legal name, Social Security number and fingerprints, and may include credit and background checks.
  2. Secure your computing and mobile devices
    In order to protect against intrusions and infections that can compromise your computer files or passwords, install anti-virus software, anti-spyware software and a firewall—and keep them up to date. This includes downloading all available security patches for your operating system, which should be the most recent version. This last step is particularly important if you plan to use an online income tax preparation site.
  3. Use a strong password
    Be imaginative when creating a password for your online tax return. For example, think of a special phrase and use the first letter of each word as your password. Include upper and lowercase letters, numbers and other characters, like punctuation marks. Substituting numbers for some words or letters makes a password that much stronger. For example, “I want to eat lunch in Morocco” could become 1W2eL1M.
  4. Watch out for impersonators
    A key strategy for fraudsters is to contact individuals via email, posing as the IRS. Suspicious emails can appear like legitimate requests for information, such as your Social Security number or address, to solve a problem with your account. Don’t respond to requests for information from anyone with whom you did not initiate conversation. Be aware that the IRS does not initiate contact with taxpayers via email, text or social messaging.
  5. Think before you click
    Just one click on an email link sent from a fraudster could unleash information-gathering malware on your computer. A Trojan Spy, the type of malware most often used to infect a machine, searches for valuable information saved on your computer, steals it and sends it back to the criminal. The same malware can also intercept information you type in an online transaction, such as your Social Security number, PIN or password. The stolen information is then auctioned off to the highest black market bidder.
  6. Be direct
    If you are searching for a tax document, don’t rely on the Internet to find it. During the tax-filing season, cybercriminals often create malicious sites that target people searching for tax-related materials. These sites could steal your personal information. Instead, go directly to the IRS website at irs.gov where you’ll find every tax document you may need.
  7. Don’t use public or unprotected computers when doing or submitting your taxes
    Filing your taxes in public places, like your favorite coffee shop, can leave you susceptible to identity theft. While many cafés offer free Wi-Fi, the connection could be intercepted by cybercriminals. Public computers could be infected with spyware or keyloggers that steal sensitive data.
  8. Don’t over-share
    If you post too much personal information on social media sites, you may provide identity thieves with what they need to answer backup “challenge” questions that can unlock your accounts and provide access to your money. Similarly, your social media accounts can provide legitimate personal information, such as your marital status and number of dependents, which criminals can use to fraudulently file a tax return and claim a refund in your name.
  9. Store your tax return securely
    After you file your taxes online you will likely be given the option to save your completed return to your computer. Don’t do it. Instead, burn the file to a CD or flash drive and store it in a lockbox or safe.
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