The FBI has warned Americans that cybercriminals are stealing identities, filing false tax returns, and fraudulently claiming them.
Over 1,000 complaints about identity theft in connection with tax returns have been filed with the FBI’s Internet Crime Complaint Center (IC3) within the past year. This represents a 26% increase from the previous year.
“Stolen refunds are often redirected by criminal actors to accounts or addresses they control, including bank accounts, prepaid debit cards, mail drops, and/or third-party accounts,” the FBI said in a public service announcement.
The IRS recommends taxpayers establish an Identity Protection Personal Identification number (IP PIN).
An IP PIN is a six-digit number that prevents someone else from filing a tax return using a stolen Social Security number (SSN) or individual taxpayer identification number (ITIN). The IP PIN is known only to the taxpayer and the IRS. It helps the IRS verify the taxpayer’s identity when they file an electronic or paper tax return.
“Once enrolled, a new IP PIN will be generated each year. Enrollment in the IP PIN program starts by establishing an online account at IRS.gov. If the taxpayer is a victim of tax identity theft, the IRS will automatically enroll the taxpayer into the IP PIN program,” the FBI advisory reads.
The IRS shares warning signs that signal unusual activity and can recognize identity theft, as follows:
- Tax return rejected
- Form W-2 or Form 1099 from an employer you didn’t work for
- Form 1099-G unemployment benefits you didn’t get or apply for
- Employer identification number (EIN) you didn’t apply for
- Unreported income alert, like a CP2000 series notice
- Someone wanting to “help” with your Online Account
- Accounts created or accessed that you didn’t create or access
- Alerts about password resets or log-in verifications
- Data breach leaked your information. Consider filing Form 14039, Identity Theft Affidavit
- Social Security account shows wages you didn’t earn or expect
If your identity was stolen, stop interacting with the scammer, do not provide any additional information, update your Online Account password, and follow IRS instructions.
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