5 Ways to Avoid Identity Theft This Tax Season

Don't fall for these tax-related scams.

With tax season in full swing, it's essential that you take extra precautions to keep your identity safe. While filing taxes is an important step in taking care of your finances, it also opens up an opportunity for identity theft if you're not careful. Here are five tips for avoiding identity theft during the tax season.

1. Protect your personal information

Any documents that contain personal information should be protected or shredded after use or when no longer needed. Treat your personal information like it is cash. Fraudsters take your tax documents, such as a W-2, and file a return to ensure your refund money ends up in their account. That is why you want to protect your sensitive documents. This includes bank statements, credit card bills, tax forms, and other documents with sensitive information.

Identity thieves will also try to steal your mail. It is an easy way to get your address and your account numbers. If you don't need your documents, shredding them makes it much harder for someone to gain access to your personal information and use it for criminal purposes. If you don't have a shredder, consider using a professional document destruction service instead.

2. Use strong passwords

Make sure all of your passwords are strong and secure by avoiding common words or phrases and combining letters, numbers, and symbols in unique ways. Hackers can easily gain access to accounts with weak passwords, so make sure yours are complex enough that they would be difficult to guess or crack.

It is also recommended that you change your passwords every few months to ensure maximum security against potential hackers or identity thieves. Additionally, it's a good idea to use a different password for each account so that if one account gets compromised, the others will still remain secure. Never share your passwords with anyone else unless absolutely necessary.

3. Be wary of phishing emails

Phishing emails are messages sent by hackers pretending to be legitimate companies in order to extract personal information from unsuspecting victims. These emails often contain links leading to malicious websites where they can steal sensitive data such as credit card numbers or Social Security numbers.

If something looks suspicious in an email, do not click on any links or download any attachments; instead, delete the message immediately and contact the company directly if necessary. Be especially vigilant during tax season as this is when many phishing attempts occur due to people needing help with their taxes or refunds.

4. Protect against computer spam and viruses

Malware is malicious software designed to steal financial information from unsuspecting victims. It often arrives via email or on a compromised website, so it's important to make sure you have up-to-date antivirus software installed on all of your devices and scan regularly for new threats. Additionally, don't open emails or attachments from unknown sources, as they could contain malware or other malicious links.

5. Avoid these common taxpayer scams

Scammers are always looking for new ways to get your personal information and steal your money or identity during tax season. Be wary of phone calls, emails, or text messages claiming to be from the IRS asking for money or personal information -- the IRS will never contact you in these ways unless you have already contacted them first! One common scam is someone will pretend to work for the IRS, claiming you owe back taxes and that an arrest warrant will be issued unless you pay the amount. If you receive a call like this, hang up immediately and report it to the IRS.

Protecting yourself from identity theft during tax season is essential for keeping your finances secure and free from fraudsters looking to steal your money. One of the best ways to protect yourself is by being aware of potential threats and taking steps to mitigate them before they become a problem. Make sure you update your antivirus software regularly, avoid clicking on suspicious links in emails, and be extremely careful when making payments over the phone or online. Never provide personal information over the phone unless you initiate contact first. By following these simple steps, taxpayers can rest assured that their data will remain secure this tax season!