Northbrook, Ailing. – March 30, 2023 – Taxpayers might get decrease refunds this yr, however that’s not stopping scammers from making an attempt to steal them.
Allstate Identification Safety is reporting a 68% spike in tax and authorities fraud instances in 2022 over 2021. In actual fact, tax refund fraud was the third most reported fraud sort in 2022, in line with the AIP Identity Fraud in Focus report.
“We get a whole lot of calls about id theft yearly throughout tax season,” mentioned Dustin Hofstein, Chief Service Officer at Allstate Identification Safety. “Refunds are stolen when a scammer makes use of your Social Safety quantity to file a tax return. Sadly, folks typically don’t know they’re a sufferer of tax fraud till they file their taxes, which is why we advise submitting as early as potential.”
The IRS flagged $5.7 billion in tax fraud in 2022, and there have been practically 8 million studies of suspicious tax-season actions.
Allstate Identification Safety is reminding folks to be diligent and act on warning indicators early to maintain their id and cash secure.
5 warning indicators of tax id theft
- You file your taxes they usually’re declined. It is a signal a scammer has already used your Social Safety quantity to file a phony tax return. Because of this, the IRS can’t settle for your digital or paper return.
- IRS data don’t have your right employment historical past or wages.
- The IRS notifies you about an further tax or refund offset you weren’t anticipating.
- You get a letter from the IRS saying your on-line account has been deactivated,
- You’ve been assigned an employer identification quantity you didn’t request.
“Among the best methods to guard your self is to safeguard your Social Safety quantity,” Hofstein mentioned. “By no means maintain your Social Safety card in your automobile, pockets or purse, and watch out sharing your quantity, even when requested.”
Contemplate signing up for an id safety service for additional peace of thoughts. Allstate Identification Safety reimburses out-of-pocket prices for varied kinds of fraud, together with stolen tax refunds.
To be taught extra about 2023 fraud predictions and probably the most prevalent scams of 2022, try Identity Fraud in Focus, the Allstate Identification Safety quarterly report. It consists of insights from tens of millions of id theft instances to maintain households safer on-line.
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