What is Identity Theft?
Identity (ID) Theft is a fraud committed or attempted using the identifying information of another person without authority. ID Theft impacts 1 out of 5 people, occurs every 2 seconds, takes 9 minutes for fraudsters to access hacked information, and can now be committed electronically (via email or a smartphone) to gain access to personal information.
The smart device age has made our lives easier, but it’s also made us more vulnerable. Identity theft, once a distant threat requiring break-ins and dumpster dives, has become an ever-present concern thanks to digital ubiquity. With the prevalence of e-filing, that holds especially true during tax season. Last year, the IRS reported identifying 1.1 million potentially fraudulent filings by early March.
Cornerstone is proud of the work we do to keep your data safe and the additional layers of protection and support we offer through our association with Raymond James. However, taking individual steps to protect yourself and your data is critical.
Know the signs.
Whether it’s a letter concerning information you never requested or an alert that an online account was created in your name, getting unexpected communications from the IRS is usually the first warning sign of tax-related identity theft.
- The IRS does not routinely email, make phone calls or communicate with individuals through social media.
- Explore more red flags at irs.gov/newsroom/taxpayer-guide-to-identity-theft.
Keep safe.
Taking a more defensive approach to your online life is simpler than you might think.
- Password managers, such as those built into browsers or dedicated apps like Bitwardenand 1Password, can help you generate stronger passwords, update them regularly, and keep them secure and encrypted in a single location.
- Enable multifactor authentication across your accounts.
- Stay current with software and operating system updates.
- Audit your online footprint: Make a list of all the sites you’ve created a username and password for and deactivate unused social, shopping and nonessential accounts.
Take action.
- File your taxes as early as possible – as soon as all the necessary forms arrive. This can help ensure a return is on its way before a bad actor even has the chance to attempt theft.
- Enroll in the IRS’s identity protection PIN (IP PIN) program. The IP PIN is a unique six-digit number generated each year to protect the use of your Social Security number.
If you have a reason to suspect you are the victim of tax-related identity theft, we encourage you to respond immediately to any IRS notices and visit IdentityTheft.gov for guidance on protecting yourself and securing accounts. If an e-filing is rejected because taxes have already been filed using your information, you may need to complete IRS Form 14309, Identity Theft Affidavit, and include it with a paper filing.
If you’d like to discuss additional security – or savings – get in touch any time.
Don’t miss our Education Event:
Beyong the Firewall: Privacy, Security, and Account Protection
Feb. 11 | 6:15pm | Hilton Garden Inn Sioux Falls South Or via Zoom
Hilton Garden Inn Sioux Falls South – 5300 S Grand Cir, Sioux Falls 57108
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Contact us today at 605-351-8553 or cfsteam@mycfsgroup.com if you’d like to learn more about the unparalleled service you can expect from the Cornerstone team.
CSP #695994 Exp. 1.14.26
Sources: raymondjames.com, irs.gov, cnbc.com
Raymond James does not provide tax or legal services. Please discuss these matters with the appropriate professional. Material created by Raymond James for use by its advisors. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete.