Keep a watch out for tax-identity theft

By Mike DeWine

The Vindicator

Several national companies such as Blue Cross-Blue Shield Anthem, Target and Home Depot have suffered recent and widely-publicized data breaches that underscore the vulnerability of identity information. Now thieves have upped their game and are using tax season to steal more than just identities — they’re filing fraudulent state income tax returns and pocketing the refunds that rightly belong to others.

Most victims aren’t aware that false returns have been submitted in their names until they send in their legitimate returns and receive rejection notices. Last year, the Ohio Department of Taxation intercepted more than 60,000 suspicious returns that cumulatively claimed more than $250 million worth of invalid refunds. That’s a substantial increase over the nearly 10,000 questionable returns the department received in 2013 that sought some $8 million in refunds.

In my office, identity theft joined our top ten consumer complaints for the first time in 2014. Last year my office handled over 75 percent more identity-theft complaints than we did in 2013.

Common-sense steps

If you’ve been affected by a data breach — tax-related or otherwise — I encourage you to take common-sense steps to protect yourself. Even if your information has been compromised, you won’t necessarily be a victim of identity theft. However, it’s still essential to monitor your accounts and check your mail — the sooner you detect a problem, the easier it is to correct.

Check your mail. Watch for notifications that you’ve been affected by a data breach.

Monitor your bank accounts. Look for suspicious activity, and if you find any, notify your bank or your credit or debit card provider immediately.

Place an initial fraud alert on your credit report. Contact one of the three major credit reporting agencies — Experian, Equifax, or Trans- Union — to place an initial fraud alert. The alert is free of charge, will stay on your credit report for 90 days, and will help block unauthorized attempts to open credit in your name.

Check your credit report. Go to www.annualcreditreport.com — you’re entitled to one free credit report per year from each of the three major credit reporting agencies. You can request all three at once or stagger your requests throughout the year.

Beware of breach-related scams. For example, a con artist may pose as a representative from the organization that was breached to persuade you to reveal your personal information.

I also suggest that you stay vigilant about possible identity theft. Signs can include:

Bills for credit cards you didn’t sign up for or member agreements for banks you’re not associated with.

Credit card charges you never made.

Surprise collection calls.

Someone else’s name appearing in your background check.

Credit reporting errors or a lower-than-expected credit score.

And finally, if you believe you’re a victim of identity theft, I urge you to notify the Ohio Attorney General’s Identity Theft Unit at 800-282-0515 or visit our website at www.OhioAttorneyGeneral.gov for more information.

Mike DeWine is Ohio’s attorney general.