During a recent traffic stop in Tampa, Fla., police didn’t find drugs in the car of a known drug dealer – they found large numbers of pre-paid debit cards and ledgers with Social Security numbers.
Identity theft involving tax fraud is increasing faster than law enforcement and government officials can handle. Identity theft to scam fraudulent tax refunds has increased 100 percent in just three years. As of August 31 of this year, the IRS tracking reports showed that the number of taxpayers affected by identity theft has more than doubled since 2008.
In Tampa, police say they have busted up several “make it rain” parties, where criminals get together in a hotel room with Internet access and file one fake tax return after another.
The really bad news is that the chances of these criminals being caught and punished are low because each fraud case amounts to an average of $3,400, which is deemed too little to merit prosecution. The IRS is also limited by law in sharing information from taxpayer returns with local law enforcement authorities, further hampering police efforts.
Protect your Social Security number. Don’t carry it around with you, keeping it instead locked in a safe place like a safe deposit box. Don’t give your number out online or on the phone, and don’t give it to anyone in person unless you are sure how it will be used and stored. Don’t be afraid to ask questions about how your number will be secured, and don’t be afraid to ask if alternative information can be used instead of your Social Security number.
Tags: debit card theft, identity fraud, Identity Theft, LifeLock, Tax identity theft
