Stolen Identity Refund Fraud (SIRF) is a growing concern that can lead to serious financial issues for taxpayers. This scam occurs when criminals use stolen personal information, such as Social Security numbers, to file fraudulent tax returns and claim refunds in your name. At Silvers Financial Services, we’ve encountered this type of fraud and understand its impact. To help you stay protected, we’re sharing essential information from the U.S. Department of Justice and the U.S. Postal Inspection Service on how to recognize and prevent this scam.
Warning Signs of Fraudulent Tax Returns
According to the U.S. Department of Justice https://www.justice.gov/tax/stolen-identity-refund-fraud and the U.S. Postal Inspection Service https://www.uspis.gov/news/scam-article/fraudulent-tax-returns-and-refunds, you should be on the lookout for these red flags:
- Unexpected IRS Notices: Receiving a notice from the IRS about a tax return you didn’t file is a major warning sign that your identity may have been compromised.
- E-file Rejection: If your electronically filed tax return is rejected because a return has already been submitted with your Social Security number, this is a strong indicator of fraudulent activity.
- Suspicious Account Activity: If you notice unexpected deposits or withdrawals related to tax refunds in your bank account, it’s important to investigate further.
How to Protect Yourself
While no method can completely eliminate the risk of SIRF, the U.S. Department of Justice and U.S. Postal Inspection Service recommend the following preventative measures:
- File Early: Submitting your tax return as early as possible can help prevent fraudsters from filing a fake return in your name.
- Guard Your Personal Information: Protect your Social Security number and other personal details. Avoid sharing your Social Security number unless absolutely necessary and shred documents containing personal information.
- Monitor Your Credit: Regularly review your credit reports for any unusual activity. You’re entitled to a free credit report annually from each of the three major credit bureaus.
- Use Strong Passwords: Secure your online financial accounts with strong, unique passwords. Consider using a password manager for added security.
- Beware of Phishing Scams: Be cautious when opening emails or clicking links, especially if the email claims to be from the IRS. Remember, the IRS will not initiate contact with you via email to request personal information.
- Consider an Identity Protection PIN (IP PIN): The IRS offers an IP PIN to add an extra layer of security to your tax account, helping to prevent unauthorized filings.
What to Do If You’re a Victim
If you suspect you’ve been a victim of Stolen Identity Refund Fraud, take immediate action:
1. Contact the IRS: File Form 14039, Identity Theft Affidavit, to alert the IRS and begin the process of resolving the issue.
2. File a Police Report: Report the identity theft to your local police department to document the incident.
3. Monitor Your Credit: Place a fraud alert on your credit reports and consider freezing your credit to prevent further unauthorized activity.
4. Seek Professional Help**: A trusted tax professional can guide you through the process and communicate with the IRS on your behalf.
Conclusion
Stolen Identity Refund Fraud is a serious issue, but by staying informed and taking proactive measures, you can protect yourself. The information provided by the U.S. Department of Justice and the U.S. Postal Inspection Service is essential for recognizing and preventing this type of fraud. At Silvers Financial Services, we’re dedicated to helping you secure your personal and financial information. If you have any concerns or need assistance, our team is here to help.
Comments