02 Mar What you need to know for tax season
**We are not tax professionals and any tax advice should be directed to your personal tax expert**
Security Tips for Taxpayers:
Protect Yourself During Tax Season
Tax season involves preparing and filing your tax return and heightened identity theft and fraud risks. Cybercriminals target individuals and businesses alike, hoping to gain access to personal or financial information to exploit for monetary gain. Sunwest Bank is dedicated to keeping you informed and secure, providing expert guidance on safeguarding sensitive data. In this comprehensive guide, we’ll walk you through essential tips for taxpayers, answer key questions, and offer Sunwest-specific strategies to protect yourself from tax-related fraud.
Understanding How Tax Refund Fraud Happens
Tax refund fraud is a common scheme during tax season, where identity thieves use stolen personal information—often just a Social Security number (SSN), name, and date of birth—to file a fraudulent tax return and claim a refund. Once the IRS processes this return, the thief pockets the refund before the legitimate taxpayer files. Since refund processing can take as little as 30 days, this crime is difficult to stop. Even worse, if the IRS detects fraud and rejects the return, the criminal often faces little or no consequences.
Key Ways Cybercriminals Obtain Information
Criminals can access personal and financial information through various tactics, including phishing scams, data breaches, and stolen wallets or documents. Once they have the necessary details, they create fake W-2s, falsify income, and submit returns in the victim’s name. If someone else has already filed a tax return using your identity, you could face serious delays, financial losses, and long-term credit damage.
To help combat these risks, Sunwest Bank recommends taking proactive steps to protect yourself.
Cybersecurity Tips for Taxpayers
As a leader in banking security, Sunwest Bank has implemented industry-leading security protocols and offers expert advice to help you stay safe during tax season. Here are our top tips for taxpayers:
File Your Taxes Early
One of the simplest yet most effective strategies to protect yourself from tax refund fraud is to file your tax return as early as possible. This leaves less time for identity thieves to submit a fraudulent return in your name. Once your legitimate return is filed, the IRS will reject any subsequent attempts by criminals.
Protect Your Personal Information
- Safeguard Your Social Security Number: Never carry your SSN card or documents containing this information unless necessary. Store them securely, such as in a locked filing cabinet or safe.
- Limit Disclosure of Financial Information: Only provide your SSN or Individual Taxpayer Identification Number (ITIN) to businesses or tax preparers when required. Be cautious with online accounts, and ensure websites are secure before submitting sensitive information.
- Avoid Phishing Scams: Sunwest Bank advises extreme caution with emails, phone calls, or text messages that claim to be from the IRS. The IRS will never initiate contact or ask for personal details via email or phone. If in doubt, contact the IRS directly through official channels.
Use Strong Passwords and Enable Two-Factor Authentication
Use strong, unique passwords and online tax filing software to protect your financial accounts. A password manager can help you generate and securely store these passwords. Additionally, two-factor authentication (2FA) should be enabled where possible, adding an extra layer of security that requires verification before logging into accounts.
Monitor Your Credit and Financial Accounts Regularly
Identity thieves don’t just strike during tax season. Regularly monitoring your credit report and financial accounts can help you detect suspicious activity early. Check your credit report annually from each major bureaus—Equifax, Experian, and TransUnion. Sunwest Bank encourages you to review bank statements and credit card accounts regularly for unauthorized transactions.
Secure Your Devices and Use Safe Wi-Fi
- Keep Your Devices Updated: Ensure your computer, smartphone, and tablet have up-to-date antivirus software and security patches installed.
- Avoid Public Wi-Fi: When filing taxes or accessing financial information, avoid using public Wi-Fi networks, which can be insecure. Instead, use a secure, private internet connection.
How to Tell If a Tax Refund Check Is Real
Given the sophistication of some scams, it’s essential to know how to verify if a tax refund check is legitimate. The IRS will send tax refund checks only after verifying your return. If you’re unsure about the authenticity of a check, visit the IRS website or contact them directly using the information provided in any IRS notice. Never trust phone numbers provided by unsolicited callers claiming to be from the IRS, this is a form of social engineering and can be very effective in scaring people into thinking they must comply.
What Happens If Someone Steals Your IRS Refund Check?
If you suspect your IRS refund check has been stolen, report the theft immediately to both the IRS and the Treasury Inspector General. Acting quickly can help minimize the damage and begin the process of recovering your refund.
What to Do If You Suspect Identity Theft
If you believe your identity has been compromised and there is a risk of tax fraud, contact the IRS Identity Protection Specialized Unit at 800-908-4490. You may also want to request an Identity Protection (IP) PIN, which adds another layer of security when filing your taxes. The IRS issues these PINs to taxpayers who have already been victims of identity theft, but they are becoming more widely available for those who want extra protection.
Sunwest Bank Is Here to Help You Navigate Tax Season
At Sunwest Bank, we prioritize your security and financial well-being. As tax season approaches, we encourage you to stay vigilant and follow our security advice to protect your personal and financial information. Should you need further assistance or wish to speak with a security expert, contact us for personalized support. Together, we can ensure you navigate tax season securely and with confidence.
Cyber threats are ever-present, but you can safeguard your sensitive data with the proper knowledge and proactive measures. By following Sunwest Bank’s tips and best practices, you’ll be well-prepared to avoid tax-related identity theft and fraud while maximizing your tax return safely.