Identity Thieves Gear Up To Steal Your Tax Refund


taxesWhat’s worse than filing your taxes? Having an identity thief steal your return check.

Identity theft is already a serious problem-the No. 1 complaint to the Federal Trade Commission, and tax-related identity theft is a growing part of this crime spree. In 2010, about 15 percent of all identity theft complaints to the FTC dealt with tax returns. In 2013, that jumped to 43 percent.

“It’s a lucrative crime and relatively easy to commit,” said Adam Levin, chairman and founder of Identity Theft 911. “All you need is a Social Security number and some counterfeit documents. It’s much easier than selling drugs or stealing cars and a lot less risky for the bad guys.”

One way to prevent this from happening is to file early. Why? The IRS may be able to process your return before the identity thieves can.

“It really can be a race to the IRS,” said Steve Toporoff, coordinator of the ‎Identity Protection Program at the FTC. “They usually don’t have access to W-2 forms, so they just make up income numbers and hope their phony return gets through the process,” Toporoff explained.

If the crook is successful, your legitimate return will be kicked out and the refund denied because the IRS computers will show that you were already paid.

Read more at CNBC.

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