by: Staff writer, Charlotte Sun
Updated: Feb 4, 2016 – 10:12 PM
A Sun reader forwarded me an official-looking email he recently received from “TurboTax Support.” It requested updated contact information “to avoid direct deposit delays/non-deposit issues,” by clicking a “My Turbo Tax Profile” link. Warning: That profile involves entering personal identifying information — including your Social Security number — potentially making you a victim of tax identity theft.
This is the time of year when tax scams happen. That’s because filing electronically doesn’t require any physical supporting documents. And it will be months before the IRS receives verification of income from employers and financial institutions.
So right now, with your Social Security number and date of birth, a crook can file a bogus return with phony income and withholding information, and get an electronic refund loaded onto an untraceable prepaid debit card within three weeks. You’re not aware of the fraud until your legitimate return is later rejected.
The Federal Trade Commission and AARP just reported that last year 45 percent of all ID theft was tax-related, almost three times higher than credit card ID theft.
There are some 30 million people who filed their 2014 returns using TurboTax, so it’s a great place to go “phishing.” Within the last week, Intuit’s TurboTax confirmed five different baited emails, including a notification that “unusual login activity” would lead to a temporary account deactivation. Intuit warns not to open attachments in any TurboTax email. Rather, send it to spoof@intuit.com, and then delete it.
Assuming you haven’t taken any scam bait, many of you may have all the information needed to file your 2015 return, so file as early as possible to beat tax scammers to the punch.
However, regardless of when you file, Florida residents can prevent anyone else from filing a 2015 tax return using their Social Security number. That’s because they’re eligible for an IRS pilot program which immediately issues a six digit Identity Protection PIN that must be included when filing. Normally only tax ID theft victims get IP PINs. Register at www.irs.gov/getanippin.
To reduce the risk of tax ID theft, the FTC and AARP suggest going through your wallet, removing your Social Security card and original Medicare card which contains your Social Security number.
Don’t share your Social Security number unless you know who’s asking, and why it’s needed. In fact, the FTC is currently investigating the source of a phishing scam purportedly from the Social Security Administration itself, offering a new feature to monitor the number’s unauthorized use.
Additionally, protectively shred all personal information to confetti rather than strips, which can be reassembled. Mail paper tax returns from the post office — not your mailbox — and don’t file electronically using unsecure Wi-Fi hotspots.
However, if you become a victim of tax ID theft, first call the IRS Identity Theft Unit at 800-908-4490. Then go to a brand new FTC site — identitytheft.gov — for all the information needed to create a recovery plan, including placing fraud alerts and credit freezes as well as getting needed IRS forms and ID theft affidavits.
Another reminder: For free help preparing and electronically filing basic tax returns by trained AARP Foundation Tax-Aide counselors, call 888-227-7669, or go to www.aarp.org/taxaide for locations and schedules.
David Morris is the Sun’s consumer advocate. Contact him c/o the Sun, 23170 Harborview Road, Charlotte Harbor, FL 33980; email dmorris@sun-herald.com; or leave a message at 941-206-1114.