As someone who writes, research and obsessed with theft identity, I have always taken pride in my ability to keep my personal information secure. I take all security steps to protect my identity, as against-shredding my junk mail and bills, removing and shredding all package labels I get, using a credit card for all purchases ( because they offer more protection against fraud), Internet security software installation on any and all devices I use, opting not to use Wi-Fi, which allows for two-factor authentication each account that will allow me to use and more, so it came as a shock when I learned Monday that I became a victim of identity theft tax.
How did I know?
Most tax identity theft victims learn about this from the IRS, as they will receive a note in the mail explaining that two statements were registered with their social security number and they need to call to solve this problem. This was not my experience, I've learned about my return before the IRS sent the letter. How it all panned out.
Once I received all the necessary documents to file my return, I jumped at the opportunity, as I am well aware of the consequences of filing later in the season. Thus, February 14, I sat down with my husband and we filed electronically. On February 15, we received an alert that our return was accepted, so I did my happy dance and I'm supposed spared another year by identity thieves. A few days passed before I started using the IRS where's my refund tool to check our refund. As time stretched on and it gets closer to the deadline of 21 days - the period within which the IRS says that most people receive their refund -. I began to have a feeling that something must be wrong
Monday 22 days since we filed, I called the IRS to find out what happens. I connected with an agent who told me that our return had been reported for any reason (she assumed it was my name change) and directed me to call another department. Thinking it was a minor hiccup, I went with my day and planned to call tonight after work. When I got home, I jumped on the phone to make sure I took care of it before the IRS closed (you might think it is an organization that never sleeps, but you'd be wrong). After explaining what I had been told earlier in the day, I was asked for my personal information - everything from my home to my Social Security number - and said I must make a copy of my two 2014 and 2015 tax returns.
Once I had pulled up, she asked very specific questions, like "What is the line 72 of the return in 2015 read?" And "What was your home address on your statement 2014 income? " To verify my identity. After answering all correctly - I have to admit it was a bit stressful - I was put on hold while the agent filed certain documents. At that time, I already assumed what had happened, and when she came back on the phone, she confirmed my fears, saying that the fraudulent tax return was filed on my behalf earlier in the season of tax - so the real return was put on hold. Since I called before I received a letter about the fraud, it was all taken care of right then and there. My legitimate return will be processed quickly.
What am I doing to alleviate fraud?
Although I wish I could say that I kept my composure after learning this news, it was not completely the case. After a few minutes of panic, I realized IRS Taxpayer Guide for identity theft, according to the guidelines of the IRS agent, and began to go through the detailed steps, most of which I already knew of research on identity theft we do at NextAdvisor. com. Here's what he told me to do:
1. Report the fraud to the FTC. This was something I already knew, because it is a must-do for those who are victims of any type of fraud or identity theft. Because the IRS agent told me that she treated the fraudulent statement to me, I thought at first it was not a step I had to take. Then, after some research, I learned file an affidavit with the FTC was an important step because it will allow me to prove to companies or creditors that my identity was stolen. Also, if you create an account when you file the affidavit, the office also creates a list of things you need to do to protect your identity, which I find very useful. The FTC also suggested that I fill out an identity theft affidavit with the IRS, but this was something the agent said I did not need to do from the desktop is already aware of flight and took steps to remedy it.
2. Check my credit reports. While I had identity protection against theft, at one time, I canceled in the fall to reduce some of my monthly expenses - bad idea on my part. As such, I decided to first check my credit reports through AnnualCreditReport.com, which allows you to legally obtain a copy of each credit report per year.
An additional step I chose to take to protect my identity, and my husband had to register for identity theft protection. There are a few reasons why I chose to do. First, I want to assure you that I keep track of my credit reports, so I know what is happening with them at all times - not AnnualCreditReport.com allows you to check once a year. Second, while the optimistic part of me thinks the thief use my information to file a tax return, the reality is that someone has my Social Security number and other sensitive personal information, which means that the type of account, they can open in my name are seemingly limitless. As such, I want to assure you that I am a professional group from my side, as well as useful tools and information to help alleviate the situation if more fraud occurs. Because I wanted protection for both me and my husband, and I had had a membership to this service in the past, I signed up for a couple Identity Guard plan.
3. Place a fraud alert or credit freeze on my reports. Either a fraud alert or credit freeze would be beneficial in this case. I opted for the former because I plan to open a new credit line soon, which means I have some flexibility. After opening this facility, I plan to change the alert to a gel, so I can be sure my credit reports are safe. Not sure what a fraud alert or credit freeze is or how to decide between them? We have a guide on credit gels and one of fraud alerts.
4. Report any fraudulent accounts as such. I was lucky that fraud impact on my tax return, at least as far as I can tell. Unfortunately, this is not the case for everyone, that identity thieves often use the information they have to open credit cards, utility bills, mortgages and other accounts they can get their hands on. If this is the case, the victim should ensure that they report any fraudulent accounts as soon as possible. In addition to asking the help of the identity of the Guard, as detailed above, I also make sure I check my bank and credit card statements daily and reporting fraudulent transactions as soon as I realize . I am also changing all the passwords for my accounts online, as I'm not completely sure how that my information has been breached.
What was the worst part of the experience?
There are two things that really bothered me about this whole experience. The first is the feeling like I was raped. Knowing someone out there not only my social security number and other personal information, but also used for personal gain is like a punch in the stomach. The second is the lack of urgency I felt to the IRS. While the IRS agents were helpful, I was frustrated that they do not automatically provide information about the next steps would be. Instead, I had to search for the information myself, which was fortunately not that hard since I am familiar with the subject of identity theft. That said, if I'm an average taxpayer who knew nothing about identity theft, I would have felt lost and overwhelmed.
How can you avoid falling victim like me?
There are two ways to avoid being a victim of identity theft tax, as mentioned in this blog, but most important is to file your taxes as soon as possible. Although this is easier said than done, as you often have to rely on your employer, banks and other institutions to send you all the necessary information to file, it is always something to aim for, as you are more likely to beat the thief if you file early. Another action I suggest taking is to check on the status of your return regularly. I am able to make the tax identity theft before the IRS alerted me because I stayed on top of my back and checked the status of my refund regularly. A simple check or call the IRS can go much further than you may think.
Want to learn more about identity theft? Follow our blog of protection against identity theft to learn other ways to keep your identity during tax season and throughout the year.