This is the time of year when criminals are most actively plotting and scheming, and credit union members are exposed and vulnerable. Tax scammers are preying on members’ social security numbers for tax-related identity theft and other crimes. In fact, nearly 50% of identity thefts are a result of unauthorized government documents, which include tax filings.
Tax season may just be starting, but these scammers have been hard at work. They’re waiting for an opportunity to steal members’ personal information for fraudulent tax refunds and other transactions. Members that become victims of tax-related identity theft become a high target for other identity crimes since hackers use their same information to sell to the black market, get loans and impersonate the victims in a multitude of other matters.
Being a victim of a tax crime can be a harrowing experience for members. The resolution process with the IRS often takes between 12-24 months. During this time and after, members’ personal information may be used for other crimes. Once the tax-related case has been resolved, IRS will employ measures to help ensure that members’ tax accounts are not compromised again. However, this does not fully protect your members from being victims of other forms of identity theft.
While the tax community must stay on top of security systems to protect taxpaying individuals and their businesses, financial institutions are also being counted on to protect their account holders’ identities and financial account information. Credit unions that offer identity theft recovery and restoration services are best equipped to do this. Victimized members that have been provided with identity theft recovery protection by their credit union can recover and protect their exposed identities easier and more quickly than those that do not have any identity recovery protection. For example, members that are covered by Vero’s IDProSelect through their credit union, are assigned a personal advocate immediately upon confirmation or suspect of any form of identity theft. When members become notified that their social security number has been compromised for tax-related theft, they need only to contact their ID theft advocate, who will handle all resolution steps for the member, as well as will have communication with the member throughout the entire process.
Credit unions should advise their members to:
February 2016 Federal Trade Commission Consumer Sentinel Report
Jim McCabe, Senior Vice President, Identity Theft Services at Vero.