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Consumer awareness about the problems of identity theft and tax-related has risen sharply over the last two years. A study by Experian found that 76 percent of respondents are familiar with those issues, up from 57 percent in 2014 and 63 percent last year. Also, 42 percent of those responding are now concerned that someone could access their personal data through their tax returns, compared to only 35 percent in 2014 and 38 percent in 2015.
"Those filing taxes, especially electronically, should educate themselves on what precautions need to be taken, and what assistance is available to them if they become a victim of identity theft." Michael Bruemmer, Experian's VP of consumer protection, said in a prepared statement.
The online survey was conducted by Edelman Berland on from January 1 to 5 and drew responses among 1,000 adults aged 18 years or older. Because of the way the survey sample was drawn, sampling error cannot be measured.
Twenty-eight percent of respondents have been a victim or know someone who has been a victim of tax fraud. However, 45 percent are not aware of the Identify Protection PIN issued by the Internal Revenue Service and only 30 percent of victims surveyed requested the IRS-issued IP PIN last year. Also, most are not planning to take steps recommended by the IRS to protect themselves.
Only 12 percent are planning to check their credit reports, a step in monitoring for fraudulent activity that could indicate identity theft. Also, only 6 percent said they will file their taxes on a computer equipped with up-to-date antivirus software.
Bob Scott has provided information to the tax and accounting community since 1991, first as technology editor of Accounting Today, and from 1997 through 2009 as editor of its sister publication, Accounting Technology. He is known throughout the industry for his depth of knowledge and for his high journalistic standards. Scott has made frequent appearances as a speaker, moderator and panelist and events serving tax and accounting professionals. He has a strong background in computer journalism as an editor with two former trade publications, Computer+Software News and MIS Week and spent several years with weekly and daily newspapers in Morris County New Jersey prior to that. A graduate of Indiana University with a degree in journalism, Bob is a native of Madison, Ind