Outsmart Tax Refund Thieves with 5 Tips from Liberty Bank

You earned it…now it’s time to save and protect it.
It’s tax time which means more money thieves are on the loose. There are two common ways that thieves steal tax refunds: filing someone else’s taxes using their Social Security number and W2 or taking tax information out of the mail. Social Security numbers are easy for criminals to get – either by going through mail; calling and pretending to be a reputable contact, also known as social engineering; or sending fraudulent emails acting as a credible source, also known as phishing. This is increasingly popular among criminals with billions of dollars at risk.

As your trusted financial partner, we’re providing you with some useful tips for protecting your 2016 tax information – if you haven’t filed yet – and future returns.

Outsmart the thieves with these five tips:

1. Use direct deposit in your personal checking account – Not only is this the safest way to receive your return; it is also the fastest and most efficient option. This also prevents thieves from physically stealing your refund check out of the mailbox.
2. Take your tax conversations offline – Even with privacy setting turned on, social media channels are still public outlets and anyone may be listening. Simply by saying you still haven’t filed your refund, indicates to thieves that there’s still time to file a fake return. You can also protect yourself by creating strong passwords and using different user names for different accounts.
3. File as soon as possible – The best way to keep thieves from filing a fake return in your name is to beat them to it. File your taxes as soon as you receive your W-2s, 1099s and other tax forms.
4. Track your refund – You can get up-to-date tax refund information using the ‘Where’s My Refund?’ online tracker at irs.gov/Refunds or the IRS2Go mobile app. Both services help protect refunds from getting stolen in the mail and from being sent to the wrong bank accounts or addresses.
5. Get an identity protection PIN – The rollout of the IRS’s identity protection PIN program verifies the identities of qualifying taxpayers. Visit the IRS website or call 1-866-704-7388 to get yours today. You’ll be asked for information from last year’s tax return and will then be prompted to select a six-digit PIN to file your return. PINs are only good for one tax year, so you’ll get a new one in December.

Real-time solutions
If you believe you’re a victim of tax refund fraud, fill out IRS Form 14039 to alert the agency right away. The IRS will track the fraudulent activity every step of the way and get your money back as quickly as possible.

You may also want to freeze your credit reports with all three major credit bureaus. The Federal Trade Commission recommends filing a complaint as well as an identity theft report with your local police department. In addition, contact your financial institutions, and be sure to annually check your Social Security earnings statement.

For additional information, please visit: liberty-bank/privacy-and-security.