Today is the deadline to file your 2017 tax return. We squeezed out a few extra days thanks to a holiday celebrated in the District of Columbia (the deadline for tax filing cannot occur on a Saturday, Sunday or legal holiday).
Earlier this month the Internal Revenue Service (IRS) released its list of top 12 scams to watch out for, also known as the “Dirty Dozen.” Phishing scams continue to top the 2018 list, followed by phone scams, identify theft and tax preparer fraud. To view the full list, visit bit.ly/2GYwCbE.
The good news is that consumer complaints over tax refund fraud have been declining over the years due to more stringent measures for filing tax returns. The IRS reported a 40 percent decline in taxpayers reporting they were victims of identity theft from 2016 to 2017. This decline is believed to be a result of additional security measures and security awareness campaigns that help consumers identify warning signs of scams.
Continued vigilance is key. Always be on guard against fake emails, phone calls and text messages from anyone pretending to be from the IRS, a tax preparer or a debt collector. It helps to file your taxes as early as possible to prevent a fraudster from filing a false one in your name.
If you are a victim of tax fraud or want to report potential fraud, contact the IRS at 800-908-4490. Trained specialists can help guide you on your next steps, which likely will include submitting an Identity Theft Affidavit (Form 14039) to the IRS.
Take additional steps to limit the damage of identity theft by contacting your financial institutions. Close any financial or credit accounts opened without your permission or tampered with by scammers.
I also recommend putting a fraud alert on your credit reports so that businesses must contact you to verify your identity before issuing credit in your name. To do this, contact any of the three major credit-reporting bureaus (TransUnion, Equifax or Experian). You also can file an identity theft complaint with the Federal Trade Commission and a police report with the Honolulu Police Department.
The reality is that tax fraud probably will never be completely eliminated as scammers spend the rest of the year seeking new ways to exploit the tax system to steal money, passwords, Social Security numbers and other personal information. Your best bet is continued vigilance, following safe internet practices with security tools to prevent malware and safeguarding your personal information.
Marc Masuno is a security enterprise architect at Hawaiian Telcom. Reach him at Marc.masuno@hawaiiantel.com.