THE ISSUE: Scams on taxpayers
OUR OPINION: State hacking puts even more focus on how taxpayers can be scammed
State senators were told this week that South Carolina is moving in the right direction on cyber-security following the massive breach at the Department of Revenue that affected 6.4 million residents and businesses.
Doug Robinson of the Association of State Chief Information Officers told a Senate committee that a proposed bill for centralizing state agencies’ cyber-security responsibilities contains key elements for success.
“It provides a high degree of accountability to protect the assets of the state,” he said.
Meanwhile, another state agency is going about the business of warning people that hacking of the state system is not the only threat to taxpayers. Such advice is the job of the S.C. Department of Consumer Affairs, but its public relations efforts this year seem particularly pertinent.
“When consumers think about identity theft, they often picture a scammer stealing someone’s personal information to get credit cards or loans. But identity thieves can use your personal information in any way that you can, including to file YOUR taxes.”
The S.C. agency offers information on preventing such income tax fraud:
Work with the Internal Revenue Service.
Did you receive a letter from the IRS? Has more than one tax return been filed in your name or are they saying that you didn’t report all of your earnings? If you are contacted by the IRS, be sure to follow the instructions in the letter. Time is of the essence — respond quickly.
Has someone misused your Social Security number or do you think you’re a victim of identity theft? If you know that a person has used your information, let the IRS know. Contact the IRS Identity Protection Specialized Unit at 1-800-908-4490.
Beware of “phishing” tax scams.
Scammers often try to solicit your personal information via e-mail or even text message. The fraudster may claim to be from the IRS to trick you into disclosing the information. Don’t be fooled. The IRS will not contact you by e-mail or text message to ask for personal information. Report a “phishing” scam at 1-800-366-4484 or at phishing@irs.gov.
Minimize risks of ID theft.
Do your research. Whether you are looking for an affordable tax preparer or filing your taxes yourself, you can learn more about protecting yourself from tax time predators. And if you’re a victim of identity theft, place a fraud alert on your credit report and consider a security freeze. For more information, visit the identity theft resources page at scconsumer.gov.
Not on the SCDCA advisory on income tax fraud is a reminder that S.C. taxpayers who believe they have been affected by the hacking of the state system can get a measure of protection.
The S.C. Department of Revenue is offering free identity theft protection. The enrollment period to obtain Experian’s “ProtectMyID” service at no cost extends until March 31. Sign up at protectmyid.com/scdor.
The service alerts a consumer when a credit report reflects new activity, such as adding a new credit card or personal loan. It is the responsibility of the individual who receives the alert to determine if the new information is accurate and reflects recent financial activity known to the individual or if it is unknown and possibly fraudulent.
If you are signed up and you believe that information on your credit report may be the result of fraud, membership gives you access to a fraud resolution specialist who will assist you. Call 1-866-578-5422.
Meanwhile, in his testimony to senators, Robinson added that he will not say whether creating the state’s chief information security officer as a separate cabinet-level position is a good idea, but he did offer some poignant advice on the type of person needed to head cyber-security for South Carolina:
“I recommend hiring a pit bull. Someone who’s resolute, who obviously takes the position very seriously.”