Wisconsin Better Business Bureau
Press Release

Scam Alert: Stolen Tax Return? Watch Out for Tax ID Theft

 

By - Feb 5th, 2020 07:31 am

Milwaukee, Wis. – Tax season is here, and so are the scammers. Con artists are using the Social Security numbers of unsuspecting Americans to file phony tax returns and steal their refunds. In honor of the Federal Trade Commission’s Tax Identity Theft Awareness Week, be on the lookout for this and other tax season cons.

How the Scam Works

You file your taxes as normal and expect a refund from the IRS. Instead, you get a written IRS notice saying that more than one tax return was filed using your Social Security number.

What happened? Scammers got ahold of your personal information, such as your Social Security number, address, and birth date. They filed your return early and received your refund before you even got around to filing. Tax ID theft is a particularly sneaky con because victims typically don’t realize they’ve been targeted until they try to file their taxes for real.

Scammers steal your tax information in several ways. You may have fallen for a phishing scam at an earlier time, used a corrupt tax preparation service, or had your information exposed in a hack or data breach.  Sometimes tax scammers file in the name of a deceased person or steal children’s identities to claim them as dependents.

Tips to Avoid Tax ID Theft:

  • File early. The best way to avoid tax identity theft is to file your taxes as early as possible, before a scammer has the chance to use your information.
  • Protect your Social Security number.  Don’t give out your SSN unless there’s a good reason, and you’re sure who you’re giving it to.
  • Research your tax preparer. Make sure your tax preparer is trustworthy before handing over your personal information.
  • If you are a victim of ID theft, consider getting an Identity Protection PIN (IP PIN). This is a six-digit number, which, in addition to your Social Security number, confirms your identity. Once you apply, you must provide the IP Pin each year when you file your federal tax returns. Visit IRS.gov for more information.

For More Information

For more information about tax scams check out this tip on BBB.org.

If you are the victim of tax identity theft in the U.S., contact the IRS at 1-800-908-4490. You should also file a complaint with the Federal Trade Commission (FTC) at ftc.gov/complaint or by calling 1-877-FTC-HELP. The FTC also offers a personalized identity theft recovery plan at identitytheft.gov.

If you’ve been targeted by this or another scam, help others avoid the same problem report it at BBB.org/ScamTracker.

For more information or further inquiries, contact the Wisconsin BBB at www.bbb.org/wisconsin, 414-847-6000 or 1-800-273-1002. Consumers also can find more information about how to protect themselves from scams by following the Wisconsin BBB on FacebookTwitterInstagram and YouTube.

ABOUT BBB: For more than 100 years, the Better Business Bureau has been helping people find businesses, brands and charities they can trust. In 2018, people turned to BBB more than 173 million times for BBB Business Profiles on more than 5.4 million businesses and Charity Reports on 11,000 charities, all available for free at bbb.org. There are local, independent BBBs across the United States, Canada and Mexico, including BBB Serving Wisconsin which was founded in 1939 and serves the state of Wisconsin.

NOTE: This press release was submitted to Urban Milwaukee and was not written by an Urban Milwaukee writer. While it is believed to be reliable, Urban Milwaukee does not guarantee its accuracy or completeness.

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