What is the IRS doing to Protect Your Identity?

Identity theft occurrences continue to rise at alarming rates and the effects of this crime can leave lasting damage on an individual's financial life and credit score. The IRS has taken some precautions to help assist with identity fraud, but most people think they aren't doing enough. Rather than depend on the IRS to protect your identity, it’s best to take your own action by using smart safeguarding procedures that will help you in preventing identity fraud.

What the IRS is Doing to Help Fight Identity Fraud

Taxpayer identity theft has more than doubled in the past two years, rising from 1 million incidences in 2011 to almost 2 million through half of 2013. Identity thieves often will file a tax return in someone else's name and collect the refund themselves. When the individual goes to file his own return, the tax return is rejected because the IRS believes it has already processed it. The IRS has taken some steps to try to reduce the occurrence of identity fraud. One method they have used is being more vigilant about flagging tax returns that have irregularities. These tax returns can be a sign that identity fraud is taking place. The IRS has also tried to incorporate programs that help people who have been the victims of identity theft. These programs are designed to have people recover faster.

While there are IRS schemes for ID fraud protection, many organizations want to see the IRS do more to help reduce the alarming rate of this crime. The IRS blames budget problems for its inability to do more to prevent identity fraud. Of course, the best id fraud protection involves taking the proper precautions with your own personal information, including getting regular credit checks.

Protecting Your Own Identity

Over the past 13 years, identity theft has reigned as the top complaint among consumers in the US. Preventing identity fraud can certainly be a challenging task, but with a little bit of diligence, you can keep your identity safe. There are many ways to protect from identity fraud. The most important thing you can do is keep your personal information as private as possible. Only give out personal information to institutions that truly need it. Make sure you know exactly who you are giving your information to and what they plan to do with it. Avoid writing down your passwords for internet accounts. Instead, memorize them and change them frequently. Be sure to choose secure passwords that would be difficult for people to guess. Only log in to these accounts when you are using a secure and encrypted internet connection.

Whenever you use your debit card or enter your PIN, be on the lookout for any suspicious activity, including cell phone cameras, that might allow identity thieves to capture your PIN. Check machines carefully before use to make sure no skimming methods have been put in place. If anything looks wrong, don't use your card. You can further protect yourself from identity fraud by protecting all of your paper documents. Shred anything that you are disposing of and lockup any documents with personal information. Consider getting a safety deposit box for your most important documents. Don't carry bank account numbers or other private information with you. If you must mail paper bills, take them to the post office rather than leaving them in outgoing mail slots where anyone might have access.

Take Advantage of Credit Monitoring

While there are many things you can do to prevent identity fraud, the only way to catch it when it happens is to be on the lookout for it. Regular credit monitoring is the best method to catch identity theft as quickly as possible. By checking your credit several times per year, you will be able to spot any mistakes or suspicious activity on your account. Be sure to report anything unusual immediately. Identity theft can be very damaging, so the sooner you catch it, the better off you'll be.

Identity theft is one of the biggest problems that consumers face today. While the IRS has taken some steps to protect our identities, there is still much that needs to be done. Luckily, we can help keep our identities safe by protecting our personal information and making wise decisions. The best id fraud protection involves keeping your personal information as safe as possible and checking your credit regularly. While some of these things may seem paranoid, you can never be too careful with your private information.

Amy Johnson is an active blogger who is fond of writing articles on identity theft and advising people how to identify the theft signs and prevent identity theft. Follow her on Twitter to know more onhow to protect your identity when the irs doesn't.