Three Ways to Protect Yourself from Identity Theft at Tax Time

CreditLoan.com - As tax time draws near, your chances of identity theft increase, according to data compiled by Javelin Strategy and Research. This is due to the vast amount of personal information suddenly being transported to your inbox or your mailbox. Your bank account numbers, social security numbers, and financial data such as your W-2 are particularly susceptible to theft. Following are 3 ways you can protect yourself and your personal information from identity thieves during tax season:

1. Monitor and Secure Important Documents: Identity theft can occur in several different ways, but the most common way is by simply stealing your mail. Therefore, it’s extremely important that you monitor your incoming mail and make sure important tax documents arrive. If you live in an area where mail theft is common, consider getting a post office box instead. Once you have these documents in hand, keep them in a safe and secure location, such as a locking file cabinet or even a safe deposit box at your bank.

2. Be On the Alert for Scams: During the tax season, identity thieves become adept at getting people’s personal information through email by simply asking for it. That is, they pretend to be a legitimate agency such as the IRS and demand your personal information, such as your social security number, through email. The IRS never initiates contact through email, so don’t fall prey to this old trick. In fact, you should never give out your bank account information, social security number, or other private information online.

3. Check for Evidence of Misuse: You should also monitor your credit report and other records to make sure your information is not being misused. You can obtain a free copy of your credit report each year by going to MyAnnualCreditReport.com. In addition, you can use a free service to monitor whether your personal information is being used to obtain goods and services. For example, a company like MyIDScore.com can help you see immediately if your identity has been stolen. If it is, you must file a police report. You can also file a report with the IRS, your bank, your credit card issuers, and the 3 major credit bureaus: Experian, TransUnion, and Equifax. All of these agencies will work with you to protect your bottom line once your identity has been stolen. They can flag your files and notify you if suspicious activity begins showing up in your accounts.