Forbes - Protect Yourself From identity theft

Helping You Make The  Decisions that matter the Most

How Does Identity Theft Happen?

Identity theft isn’t new. But studies show that as the pandemic’s restrictions forced us to be more online for everything from work to grocery shopping, it also exposed our poor online security habits.

Financial identity theft is any scheme that involves using a fake identity to steal money. Criminals may use a victim’s name to:

• Apply for a credit card
• Apply for a loan
• Access the victim’s financial accounts
• Open a new bank account which will then be used to commit other forms of fraud
• File a tax return and receive a refund

Often, victims first become aware that their identities have been stolen because they receive a statement in the mail from a financial account that they don’t recognize. Or they may receive a letter from the IRS informing them about a suspicious return that’s been filed in their name.

Once you become aware that identity thieves have your information, it’s important to act quickly to minimize your financial losses. To limit credit fraud, you can place a fraud alert on your credit reports and/or freeze your credit.

For tax identity theft, you’ll want to notify the IRS that you may be a victim of identity theft. Once it’s confirmed that you’re a victim, you’ll be issued an IP PIN each year that will be used to verify your identity on all future returns. You can also request an IP PIN at any time.