Identity thieves will be out in full force this tax season, counting on individuals that are distracted from protecting their confidential financial information. Changes in filing methods also may give people a false sense of security, causing them to believe their personal data is protected.
"No matter how you choose to file your taxes, identity thieves are looking to prey on unsuspecting victims during tax season," says Jay Foley, executive director of the Identity Theft Resource Center. "A large amount of confidential information changes hands this time of year and while more Americans are filing taxes online, new technology shouldn't fool them into thinking they are protected against the crime."
The Internal Revenue Service reported that more than 86 million taxpayers filed taxes online during the 2008 tax-filing season, a 12 percent increase from the previous year. However, while filing online or e-filing continues to grow in popularity and hard copy returns become a thing of the past, Americans still send and receive a large amount of sensitive information on paper documents, such as W-2 forms, old pay stubs and investment information, which can leave them vulnerable to identity theft.
It's essential to properly store and destroy these paper documents after use. According to the survey, a majority of Americans (78 percent) report accumulating a shoebox full of paperwork during tax season, yet only 20 percent say they shred their back-up paperwork once they are done filing taxes.
"Shredding is one of the easiest ways to get rid of confidential information you no longer need and is a vital step toward protecting your identity during tax season," says Nancy Heaton, senior global marketing manager at Fellowes, Inc. - "Shredding will not only protect against the crime, but will help keep you more organized during an already hectic time of year."
