The IRS admittedly has little control over protecting your tax returns against identity theft. The problem is too big, the data too widely available, prevention too rarely attended to until it’s already too late. Your tax returns are the Holy Grail of identity theft because they contain virtually every piece of information a fraudster needs to BECOME you. But you don’t have to be a victim; you simply need to take responsibility for what is rightfully yours – your tax return information and your identity. The changes aren’t difficult, they simply require you read through this document so that you recognize the risks. Once that’s done, you simply avoid the highest-risk behaviors.
Here is a comprehensive list of frauds, scams and high risk tax-time practices.
It’s nerve racking to realize that the IRS increasingly struggles to control taxpayer identity theft. Since 2008, the IRS has identified 470,000 incidents of identity theft affecting more than 390,000 taxpayers. “Victims of tax-related identity theft are the casualties of a system ill-equipped to deal with the growing proficiency and sophistication of today’s tax scam artists” said Sen. Bill Nelson, who chairs the newly formed Subcommittee on Fiscal Responsibility and Economic Growth.
Anderson Cooper’s 1st show of the year brought a panel of experts to discuss New Year’s resolutions, why we make them and how we can better keep them. Identity theft expert John Sileo closed out the show with 3 Tips for Avoiding Scams in the new year. Click on the video to the left to view the segment. Anderson and John discuss smartphone stupidity, passwords and social networking privacy.
Identity Theft Expert John Sileo Appears on the Anderson Cooper New Year’s Resolution Special.
John Sileois an award-winning author andspeaks internationallyon the dark art of deception (identity theft, data privacy, social media manipulation) and it’s polar opposite, the powerful use of trust, to achieve success. He is CEO of The Sileo Group, which advises teams on how to multiply results and increase performance by building a culture of deep trust. His clients include the Department of Defense, Pfizer, the FDIC, and Homeland Security. Sample his keynote or media appearances on Anderson Cooper, 60 Minutes or Fox Business. Contact him on 800.258.8076.
If you received an iPad for the holidays (or already have one), you own the most powerful productivity tool invented in the last 20 years – it’s like command central for your life and work. I use the iPad as a step-by-step, centralized way to keep tabs on everything related to my business. Over a cup of coffee, I consume highly-relevant information (no Angry Birds at this point in the day) in a low-stress way simply by clicking through my iPad apps in a consciously prioritized order. I’m not actually taking action on anything at this point, just getting an overview of the appointments, current events, and communications that will make me more effective. That way, when I get down to work, I know exactly what should get my attention. The routine is always the same, so I never have to remember what I need to do except to open my iPad before I officially start the day. The process takes me about 20 minutes, and by the time I get to work, my brain has sorted most of the information and knows where to start. Here’s how I consciously prioritize my apps (see screen shot):
Identity theft increases a great deal when you are on the road. Start protecting yourself with these Top 5 Identity Theft Tips while traveling:
Travel Data Light. If you don’t have to take it with you, increase your safety and leave it at home. This includes checkbooks, debit cards, excess credit cards, Social Security cards and any excess digital gadgets. Simplicity is Security!
Guard Your Devices. Smartphones and tablets are as powerful as laptops. Turn on the auto-lock passcode to keep others out of your information.
Surf Protected. Stop using the free WiFi hotspots in cafes, airports and hotels, as they are constantly sniffed by cyber criminals. Instead, setup tethering between your mobile phone and tablet or laptop so that you are surfing safely.
Privacy Please! Instead of leaving loads of data unprotected in your hotel room (a major source of theft), hang your privacy sign on the door and let house cleaning know that you do not want to be disturbed. Lowering traffic lowers risk.
“Data theft goes through the roof on the road,” says Sileo . . . Two key challenges for travelers involve the use of unsecured wireless networks at hotels, airports and other public venues and the infiltration of smartphones through Bluetooth technology . . .
When booking airline tickets, hotels or other arrangements, use a credit card rather than a debit card, because it decreases your liability. And never announce on social networks that you’re leaving town, if only to keep someone from breaking into your home . . .
Why fight parking-lot-road-rage, UFC-sanctioned-psycho-shoppers and 12 a.m.-midnight-start-times on Black Friday when you can shop from the comfort of your laptop or iPad while sipping eggnog on the couch (or more likely, from your office desk)? I’m talking about Cyber Monday, of course – the day that online merchants heavily discount their products and generally give free shipping as well. By shopping online, you get most of the same deals and discounts (some of them better) without the breakneck competition common in stores the day after Thanksgiving.
Online shopping during the holidays is a convenient, green, inexpensive way to celebrate the season with less stress. In fact, it’s such an efficient way to buy gifts that cyber shoppers will spend close to $2 Billion this coming Monday. If you are one of them, take a few steps to add peace-of-mind to your peaceful holidays.
You’ve heard it all before – conduct online business through secure Wi-Fi only, watch your incoming mail for erroneous credit invitations, check your statements and your credit reports, and set up strong passwords and alerts, yada yada! But here are a few additional times you’ll want to be vigilant, especially this holiday season!
Car Loans. According to the Financial Crimes Enforcement Network, auto loan identity theft is twice as high as any other form. Most dealerships have you complete paperwork with identifying personal data (name, address, date of birth, phone number) up to and including a loan application, which likely includes your Social Security Number. How is this data handled? Unless you actually purchase the vehicle, and your paperwork becomes part of a permanent file, refuse to complete it. Most dealerships simply toss your paperwork after 30 days if you don’t make a purchase. Their trash receptacle then becomes a pre-qualified source for identity thieves.
Business Killers: Identity Theft and Data Breach Protection Webinar on November 10
On November 10, I will host an interactive webinar sponsored by Deluxe that will explore how small businesses can protect themselves from identity theft. As someone who lost more than $300,000 and my small business to identity theft, this is a topic I care about deeply. In addition to delivering keynote speeches at conferences, I also provide consulting and guidance to organizations like the Federal Trade Commission, Pfizer and the Department of Defense on how to best protect the sensitive data inside of their organizations.
During this multi-part webinar, I will provide simple, actionable tools and advice to help small businesses protect their data and retain information privacy. I’ll also explain how the information economy has shifted the competitive landscape and increased our data exposure. Attendees will learn the following:
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