Tag: identity theft

Record Year for Data Breaches

Breaking a record is often cause for celebration. But not when that record is the number of data breaches in one year. As recently reported in Fortune Magazine, the number of reported data breaches so far in 2021 has already surpassed the total for all of 2020. Reported breaches this year are on track to break the record set in 2017. Good reason to pop a cork, but not on a bottle of champagne.

Chris Morris’ article at https://fortune.com/2021/10/06/data-breach-2021-2020-total-hacks/ is based on statistics reported by the Identity Theft Research Center (ITRC). It’s a fascinating read, and scary, too. ITRC statistics only include data breaches that are disclosed by the victim. The report points out that data breach disclosures are down, indicating that more breaches are occurring than are reported.

The other scary aspect of the ITRC report is that the successful tactics used by cybercriminals exploit the same old vulnerabilities – failing to install system updates and patches. Outdated systems leave the door open for unscrupulous hackers to grab valuable data, some of which can be used later to commit other crimes, such as wire fraud and ransomware attacks.

Here are six tips to avoid becoming an ITRC statistic:

  • Keep software systems up to date and use a good anti-virus program.
  • Examine the email address and URLs in all correspondence to detect a scammer mimicking a legitimate site or email address.
  • Ignore text messages, emails, or phone calls asking you to update or verify your account information and go to the company’s website to see if something needs your attention.
  • Never open unexpected attachments until verifying the sender’s email address and use virus scan before opening any document.
  • Scrutinize all electronic requests for a payment or fund transfers.
  • Be extra suspicious of any message that urges immediate action.

We all dream of breaking a record, popping that champagne cork, and showering the cheering crowd with bubbly. Those bubbles will burst if that record is for the highest year of reported data breaches since 2017. As the article in Fortune tells us, we’re there. Data breaches that lead to monetary loss and ransomware attacks reported so far in 2021 have already exceeded those reported in all of 2020.

Don’t want to be an ITRC statistic or a victim of wire fraud and ransomware attacks? It’s hard to be 100% on anything but following the six tips to avoid a breach can help protect your systems from unscrupulous hackers who want to grab your valuable data.

Protect Your IRS Tax Identity

It’s not big news that scams, frauds, and identity theft are on the rise. New, pandemic-inspired scams related to Economic Impact Payments (EIPs) and Paycheck Protection Program (PPP) funds have started, while income tax filings and financial information remain big, juicy targets for criminals. 

Scrabble tiles spelling "who are you" in a square.

The IRS has responded by expanding its Identity Protection Program to any taxpayer who can verify her or his identity, instead of being limited to taxpayers who report an identity theft issue. The IRS and the tax preparer community want to inform taxpayers about the Identity Protection PIN Opt-In Program to protect against tax-related identity theft when filing a federal income tax return.

Six things to know about the Identity Protection PIN Opt-In Program (IP PIN):

  1. The IP PIN is a six-digit code known only to the taxpayer and to the IRS. It helps prevent identity thieves from filing fraudulent tax returns using a taxpayers’ personally identifiable information.
  1. To obtain an IP PIN, the best option is Get an IP PIN, the IRS online tool. Taxpayers must validate their identities to access the tool and their IP PIN. Before attempting the process, see Secure Access: How to Register for Certain Online Self-Help Tools. 
  1. Once issued by the IRS, the taxpayer’s tax account is locked, and the IP PIN serves as the key to opening that account. Electronically-filed federal income tax returns that do not contain the correct IP PIN will be rejected and a paper return must be filed.
  1. An IP PIN is valid for one specific calendar year. A new IP PIN must be obtained for each filing season.
  1. Current tax-related identity theft victims who have been receiving IP PINs via mail will continue to receive an annual IP PIN to file her or his federal income tax return.
  1. There is no opt-out option. The IRS is working on it for 2022. Taxpayers who cannot provide an IP PIN or obtain a replacement can’t unlock her or his tax account and must file the return in paper form. Any refund will take several weeks to process.

The IRS IP-PIN Program is an option for taxpayers to protect her or his identity from theft and fraudulent tax filings. For taxpayers that want to use the program, the IRS offers more information and instructions at this link – https://www.irs.gov/identity-theft-fraud-scams/get-an-identity-protection-pin.

IRS Expands Identity Theft Protection Program

Identity theft has existed for almost as long we we’ve had identities. Back in the Old Days, identity theft involved paper and the U.S. mail. The Internet and other online tools made identity theft faster and more wide-spread. Several year ago, when scammers hit taxpayers hard by stealing their IDs and filing fraudulent tax returns, the IRS reacted by starting an Identity Protection Program. Taxpayers who report an identity theft issue are issued an Identity Protection Personal Identification Number (IP-PIN) for filing her or his federal tax return.

With identity theft getting worse all the time, the IRS is rolling out a voluntary nation-wide IP-PIN Program for taxpayers to get identity theft protection before falling victim to an identity thief. After several years of piloting the program in different parts of the country to make sure it works as intended, the IRS is expanding the program nation-wide effective now.

How does the IP-PIN Program work? Here are six things you need to know:

  • The (IP PIN) is a six-digit code known only to the taxpayer and to the IRS. It helps prevent identity thieves from filing fraudulent tax returns using a taxpayers’ personally identifiable information.
  • Once issued by the IRS, the taxpayer’s tax account is locked, and the IP PIN serves as the key to opening that account. Electronically-filed federal income tax returns that do not contain the correct IP PIN will be rejected. A paper return must be filed. That return will go through additional scrutiny for fraud.
  • An IP PIN is valid for one specific calendar year. A new IP PIN must be obtained for each filing season.
  • This is a voluntary program. Taxpayers who want IRS assistance with identity theft protection must pass a rigorous identity verification process. Spouses and dependents are eligible for an IP PIN if she or he can also pass the identity verification process.
  • Current tax-related identity theft victims who have been receiving IP PINs via mail will experience no change.
  • There is no opt-out option. The IRS is working on it for 2022. Taxpayers who cannot provide an IP PIN or obtain a replacement can’t unlock her or his tax account and must file the return in paper form. Any refund will take several weeks to process.

The IRS IP-PIN Program is one option taxpayers can use to protect her or his identity from theft and fraudulent tax filings. For taxpayers that do want to use the program, the IRS offers more information and instructions here – https://www.irs.gov/identity-theft-fraud-scams/get-an-identity-protection-pin.