Online Security Review Steps to Protect Yourself from Tax Identity Fraud
By William F . Whelan , guest columnist and Senior VP , Branch / Government Banking , Capital Bank .
As the 2017 tax season gets underway , Capital Bank of New Jersey is urging all customers to take extra precaution when filing their return to prevent their exposure to tax fraud .
“ Fraudsters are using very clever tactics to get a hold of your personal information and submit false tax claims ,” said David J . Hanrahan , Sr ., President and CEO . “ Consumers must be suspicious of any communication from the IRS — through e-mail , text or social media — that requests personal information , and should keep a watchful eye out for missing W-2s and mail containing sensitive financial information .”
Tax identity fraud takes place when a criminal files a false tax return using a stolen Social Security number in order to fraudulently claim the refund . Identity thieves generally file false claims early in the year and victims are unaware until they file a return and learn one has already been filed in their name .
To help consumers prevent tax ID fraud , Capital Bank of New Jersey is offering the following tips :
1 . File early . File your tax return as soon as you ’ re able , giving criminals less time to use your information to file a false return .
2 . File on a protected Wi-Fi network . If you ’ re using an online service to file your return , be sure you ’ re connected to a password-protected personal network . Avoid using public networks like a Wi-Fi hotspot at a coffee shop .
3 . Use a secure mailbox . If you ’ re filing by mail , drop your tax return at the post office or an official postal box instead of your mailbox at home . Some criminals look for completed tax return forms in home mailboxes during tax season .
4 . Find a tax preparer you trust . If you ’ re planning to hire someone to do your taxes , get recommendations and research a tax preparer thoroughly before handing over all of your financial information .
5 . Shred what you don ’ t need . Once you ’ ve completed your tax return , shred the sensitive documents that you no longer need and safely file away the ones you do .
6 . Beware of phishing scams by e-mail , text or phone . Scammers may try to solicit sensitive information by impersonating the IRS . Know that the IRS will not contact you by e-mail , text or social media . If the IRS needs information , they will contact you by mail first .
7 . Keep an eye out for missing mail . Fraudsters look for W-2s , tax refunds or other mail containing your financial information . If you don ’ t receive your W-2s , and your employer indicates they ’ ve been mailed , or it looks like it has been previously opened upon delivery , contact the IRS immediately .