With tax season quickly approaching, now is the perfect
time to spread the word about Tax Fraud Awareness week (January 29- Feb 2). In the 2016 tax filing season, there was a 400% increase in tax-related phishing and malware attacks. With fraudulent activity at an all time high, it is important to be familiar with
ways to stay safe this upcoming tax season. The graphic below provides recent facts on tax scams as well as tips on ways to keep your personal information from being compromised and falling victim to a tax scam. The most important tips to take away from this
are the following:
1. File Early
Not only are you benefiting from an earlier tax return, but you will also be protecting your personal information from scammers.
The earlier you file, the less of a chance you have of becoming a victim of tax fraud.
2. Be Aware of scams
Scammers have become more crafty with how they collect your personal data. It is important to know that the
will never call or visit your home for any tax related queries. Mail and email are the frequent means of communication
by the IRS and any other form of communication should be considered a scam.
3. Shred Important Documents
Make it a habit to dispose your personal information once deemed unnecessary. Tax scammers will spare no expense to snatching
your personal documents that are easily accessible.
Another tip that can be very beneficial to taxpayers is
to sign up with a service that specializes in identity theft protection. LifeLock’s
theft protection service is one example, and was named as one of the best options in 2018 by A Secure Life thanks
to their 24/7 customer support and detection technology. Having a service that alerts you with any activity on your personal information is a smart solution to stay safe from scams this tax season.
Check out the infographic below to learn more about tax
fraud and how to keep yourself safe.
The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer