The rise of tax-related identity theft on social media

Understanding tax-related identity theft

Tax-related identity theft occurs when someone uses your stolen personal information, such as your Social Security number (SSN), to file a tax return and claim a fraudulent refund. Victims often remain unaware until they file their taxes and discover that a return has already been submitted in their name. This can result in delayed refunds and significant efforts to resolve the issue.

The role of social media in facilitating scams

Social media platforms have become fertile ground for scammers. By sharing personal details like your full name, birthdate, or even your children's names, you may inadvertently provide fraudsters with the information they need to steal your identity. Scammers can use this data to impersonate you or create convincing phishing messages. The IRS has noted an increase in scams involving social media, emphasizing the need for caution when sharing personal information online.

Common tax scams to watch out for

1. Phishing and smishing scams: Scammers send fraudulent emails (phishing) or text messages (smishing) posing as the IRS or tax professionals to trick individuals into providing personal information or clicking on malicious links.
2. Fake tax preparers: These are individuals who pose as tax professionals, prepare your tax return for a fee, but do not sign the return or include a Preparer Tax Identification Number (PTIN). This can lead to fraudulent returns being filed in your name.
3. Fake charities: Scammers create fraudulent charities, especially during crises, to steal money and personal information from well-intentioned donors.

Protective measures to consider

• Limit personal information sharing: Be mindful of the personal details you share on social media. Adjust privacy settings to restrict access to your information.
• Verify communications: The IRS does not initiate contact with taxpayers via email, text messages, or social media channels to request personal or financial information. Be skeptical of unsolicited messages claiming to be from the IRS.
• File taxes early: Submitting your tax return as early as possible reduces the window of opportunity for scammers to file a fraudulent return in your name.
• Use strong, unique passwords: Ensure your online accounts, especially those related to finances, have robust passwords. Consider using a password manager to keep track of them.
• Monitor financial accounts: Regularly check bank and credit accounts for unauthorized activities. Early detection can prevent further damage.
• Obtain an Identity Protection PIN (IP PIN): The IRS offers an IP PIN, a six-digit number that adds an extra layer of security to your tax filing process. This helps prevent someone else from filing a tax return using your SSN.

Reporting suspicious activity and recovering from identity theft

If you suspect you've fallen victim to tax-related identity theft, prompt action is necessary. Report the incident to the relevant social media platform, the IRS, and the Federal Trade Commission. These organizations can guide you through the recovery process, including how to secure your accounts and dispute fraudulent claims.

Recovering from identity theft can be a lengthy, stressful process. However, taking immediate steps to report and address the issue can alleviate some burdens and prevent further misuse of your personal information.

You can also turn to LifeLock for help. LifeLock offers a comprehensive approach to help individuals recover from identity theft, providing essential support and resources to navigate the complex process of reclaiming one's identity. With advanced monitoring technology, LifeLock alerts members to potential threats to their identity across various networks and institutions. 

In the event of identity theft, LifeLock's dedicated restoration specialists step in to take on the heavy lifting of contacting creditors, filing paperwork, and taking necessary actions to dispute fraudulent transactions and accounts opened in the member's name. This support not only helps to mitigate the financial impact of identity theft but also significantly reduces the time and stress involved in the recovery process, empowering victims to regain control of their personal and financial life.

Remember, the key to combating identity theft is a combination of awareness, education, and action. Share this knowledge with friends and family, adjust your privacy settings, and remain cautious about the information you share online. Together, we can thwart the efforts of tax scammers and secure our digital futures.