Kroll Fraud Solutions Blog – A Dialogue on Data Security

A recent story by the Associated Press (AP) details a purportedly new identity theft scam involving “dormant” Social Security numbers (SSNs)—that is, numbers issued but not yet used for credit purposes. The article explains that so-called businesses, generally under the guise of a credit repair organization, sell these numbers by calling them credit privacy numbers (CPNs). They make false claims about your “right” to use a number other than your SSN when applying for credit. There are even how-to videos on the web touting the use of these numbers to obtain a “fresh start” for your credit – a way to hide your current bad credit rating and start anew. The problem with this is, according to the FTC, it’s completely illegal.

Waiting for your tax refund?

Promptly remove mail from your mailbox after delivery. The longer your mail sits in an unsecured mailbox, the greater your chances of it falling into the wrong hands.

You may also choose to have the IRS deposit your tax refund directly into your bank account, further minimizing the risk of theft.

by Charlotte Rose

Senior Investigator, Kroll Fraud Solutions

Planning to file your tax return electronically?

Heed these suggestions:

• Obtain a list of all authorized e-file providers registered with the IRS. According to the IRS, a record 90 million tax forms were filed electronically last year, compared with 86 million in 2008. If you’re a part of the latest trend, be sure you are using a credible service provider.
• Avoid sending data over a wireless network. If not properly secured, data can easily be picked up by an uninvited party.

To avoid what has become an increasingly common method of tax-related identity theft, taxpayers must remember one simple fact: the IRS never contacts taxpayers by email or phone to request sensitive personal information.

• Phishing schemes take a variety of forms, many of which utilize current news or trends to lure you into thinking the email, letter, or telephone call is real. Visit the IRS website for information on the latest scams, including those using social media and phony websites.
• If you receive a telephone call or email that you suspect may be a phishing scam, file a complaint with the Anti-Phishing Working Group and contact the IRS immediately.

To help you prepare for the April 15 tax filing deadline coming up next week, today we are posting the first in a week-long series of consumer tips. These tips include general advice for keeping PII safe, ways to make the filing process more secure, and advice for information disposal after tax season.

Consumer Tax Filing Tip #1: Beware of tax preparer fraud.