A criminal, having illegally obtained your Social Security number, files a fraudulent tax return in your name and collects a refund. When you submit your legitimate tax return, it is rejected because the IRS has already processed a return with your Social Security number. In some cases, you may receive a notice prior to filing your return that the IRS has received a suspicious return using your identity.
What to do:
- File your return early, reducing the likelihood that a criminal would have previously filed a fraudulent return.
- If your return is rejected because of a duplicate filing under your Social Security number, submit Form 14039, Identity Theft AffidavitOpens in a new window, to the IRS.
- Remember, the IRS will contact you through the US Postal Service, not a phone call. If you receive a letter from the IRS that it has received a suspicious return using your identity, contact the IRS. Visit IRS.govOpens in a new window for contact information.
- Do not return a call from someone claiming to be with the IRS.
Continue to pay your taxes and file your legitimate tax return, although you may have to submit a paper return rather than an electronic one. Attach Form 14039, Identity Theft Affidavit, when filing your return.
2. Employment or health care fraud
A person uses your identity to obtain a job or receive health care services. You may become aware of the scheme after you file your tax return, and are notified by the IRS that you appear to have underreported your income and owe additional tax. Or, in the health care version of the scheme, you receive notification that you are required to pay for medical exams, procedures, and prescription drugs that you never received.
What to do:
- If you suspect you are a victim of taxpayer identity theft, immediately contact the IRS and file Form 14039, Identity Theft AffidavitOpens in a new window.
- Never surrender Social Security, Medicare or health insurance numbers to anyone you don't know and trust.
- If you believe someone has signed up for health insurance in your name, call the Health Insurance Marketplace call center at 800-318-2596, and explain the situation.
3. Tech support scam
You receive a phone call from someone claiming to be a technical support person, informing you that there is something wrong with your computer and the caller can help you fix the problem. Alternately, a message appears on your computer screen informing you that your computer is infected with viruses, or that you are locked out of your computer and your files have been encrypted, denying you access. If you follow the instructions of the caller or the screen message, your computer may be taken hostage and your personal information stolen. You are then asked to pay a fee to restore access to your computer or data.
What to do:
- Prevention is the best medicine. Don't click pop-up ads or attachments from unknown senders. Avoid clicking links in emails. Visit known websites by manually typing the URLs in a browser.
- Do not allow anyone to control your computer remotely and don’t give passwords and security codes to anyone on the phone.
- Hang up if you receive tech support call, and don't respond to scare messages about your computer being infected. If you need help with your computer, go to your local computer or electronics store.
- Back up your data regularly. That way, you can reboot and regain control of your computer by cleaning your hard drive and reinstalling your operating system.
4. Credit card fraud
Someone using your identity signs up for a credit card and racks up large charges. A crook who obtains a new card could use it extensively before being discovered. Sometimes, a stolen identity is used to obtain personal loans or open unauthorized financial accounts. You will likely learn about this when bills are not paid and collection agencies start calling for payments.
You may notice either you are not getting any postal mail or you start receiving confirmation or decline letters for credit cards or loans that you did not initiate.
What to do:
- Report the crime and start a recovery plan on IdentityTheft.govOpens in a new window.
- Notify law enforcement officials.
- Consider freezing your credit files if you do not have any plans to take new credit cards or loans. Beginning September 21, 2018, you can freeze and unfreeze your credit file for free. Read more about it on the Federal Trade Commission websiteOpens in a new window.
- Put a fraud alertOpens in a new window on your credit reports, which notifies lenders and creditors that they should take extra steps to verify your identity before extending credit. Contact one of the 3 credit bureaus to report the crime (Equifax at 800-525-6285, Experian at 888-397-3742 or TransUnion at 800-680-7289). For a fee, these credit bureaus can also help with freezing your credit files, to prevent unauthorized activity.
5. Fake charities
You are solicited by email, phone, or in person to contribute to an organization that sounds like a good cause but is actually a scam. Such schemes may be general in nature, often using a name very similar to a well-known charity, or they may be more targeted, attempting to prey on people who are victims of a natural disaster or known to have a personal interest in a particular disease or social cause. These days, charity scams are also being circulated through social media posts such as Facebook, Twitter, WhatsApp and LinkedIn.
What to do:
- Before contributing, research the charity through the Better Business Bureau's (BBB) Wise Giving AllianceOpens in a new window, Charity NavigatorOpens in a new window, Charity WatchOpens in a new window, or GuideStarOpens in a new window.
- If you suspect you have been a victim of charity fraud, file a complaint on IdentityTheft.govOpens in a new window.