Post from Community: BBB Tip: Concerned about ID theft? File early and considering using an IRS PIN | Milwaukee Neighborhood News Service
Wisconsin Better Business Bureau
January 26, 2021
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The United States’ tax season is here, and so are the scammers. Con artists use the Social Security numbers of unsuspecting Americans to file phony tax returns and steal refunds. One way to protect this information is to use an Identity Protection PIN issued by the IRS. In fact, a number may have been issued to you last year if you filed a return online. Be aware of online identity theft with these tips.
How the Scam Works
Online filers that go through the IRS website and in most cases expect a refund. Instead, a written IRS notice arrives in the mail, stating that more than one tax return was filed using your Social Security number.
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What happened? Scammers got hold of personal information, typically the account holder’s 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 actually file their taxes.
Scammers steal tax information in several ways, such as a phishing scam, a corrupt tax preparation service, or the information was 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.
How to Avoid Tax ID Theft Scams: