The title="Tax Time Identity Theft" href="http://www.sileo.com/?p=5225">IRS admittedly has little control over protecting your tax returns against identity theft. The problem is too big, the data too widely available, prevention too rarely attended to until it’s already too late. /> Your tax returns are the Holy Grail of identity theft because they contain virtually every piece of information a fraudster needs to BECOME you. But you don’t have to be a victim; you simply need to take responsibility for what is rightfully yours – your tax return information and your identity. The changes aren’t difficult, they simply require you read through this document so that you recognize the risks. Once that’s done, you simply avoid the highest-risk behaviors.

Here is a comprehensive list of frauds, scams and high risk tax-time practices.

Top Tips for Tax Time Identity Theft Protection

Your greatest risk of identity theft during tax season comes from your tax preparer (if you use one) either because they are dishonest (less likely) or because they are careless with your sensitive documents (more likely). Just walk into a tax-preparers office on April 1 and ask yourself how easy it would be to walk off with a few client folders containing mounds of profitable identity. The devil is in the disorganization. Effective Solutions:

• Choose your preparer wisely. How well do you know the person and company preparing your taxes? Did they come personally recommended, or could they be earning cash on the side by selling your personal information. Do they have an established record and are they recommended by the Better Business Bureau?
• Interview your preparer before you turn over sensitive information. Ask them exactly how they protect your privacy (do they have a privacy policy?). Are they meeting with you in a room full of client files, or do they take you to a neutral, data-free, conference room or office? Do they leave files out on their desk for the cleaning service to access at night, or do they lock your documents in a filing cabinet or behind a secure office door? Do they protect their computers with everything listed in the next section?
• Asking professional tax preparers these questions sends them a message that you are watching! Identity thieves tend to stay away from people they know are actively monitoring for fraud. Remember, losing your identity inside of their accounting or bookkeeping business poses a tremendous legal liability to their livelihood.
• Make sure you always (not just at tax time) pay with security checks like those provided by  title="Deluxe Secure Checks" href="http://www.deluxe.com">Deluxe.

Secure Computers. Last year, more than 80 million Americans filed their tax returns electronically. To prevent electronic identity theft, you must take the necessary steps to protect your computer, network and wireless connection. Additionally, your tax preparer should be working only on a secured computer, network and internet connection. Hire a professional to implement the following security measures:

• Strong alpha-numeric passwords that keep strangers out of your system
• Anti-virus and anti-spyware software configured with automatic updates
• Encrypted hard drives or folders (especially for your tax preparer)
• Automatic operating system updates and security patches
• An encrypted wireless network protection
• A firewall between your computer and the internet
• Remove all file-sharing programs from your computer (limewire, napster, etc.)

Even though you use a strong password to protect your data file when e-filing, burn the file to a CD or flash drive once you’ve filed. Remove the personal information from the hard drive. Store the backup in a lock box or safe.

Private information should be transmitted by phone using your cell or land line (don’t use cordless phones). In addition, never email your private information to anyone unless you are totally confident that you are using encrypted email. This is a rarity, so don’t assume you have it. In a pinch, you can email password protected PDF documents, though these are relatively easy to hack.

Stop Falling for IRS Scams. We have a heightened response mechanism during tax season; we don’t want to raise any red flags with the IRS, so we tend to give our personal information without much thought. We are primed to be socially engineered. Here’s how to combat the problem:

• Make your default answer, “No”. When someone asks for your Social Security Number or other identifying information, refuse until you are completely comfortable that they are legitimate. Verify their credentials by calling them back on a published number for the IRS.
• If someone promises you (by phone, fax, mail, or in person) to drastically reduce your tax bill or speed up your tax return, don’t believe them until you have done your homework (call the IRS directly if you have to). These schemes flourish when the government issues economic stimulus checks and IRS refunds.
• If anyone asks you for information in order to send you your check, they are scamming for your identity. The IRS already knows where you live (and where to send your rebate)! By the way, the IRS will NEVER email you for any reason (e.g., promising a refund, requesting information, threatening you).
• To learn more about IRS scams, visit the only  title="Official IRS Website" href="http://www.irs.gov">legitimate IRS website. If you are hit by an IRS scam, contact the  title="IRS Taxpayer Advocate Service" href="http://www.irs.gov/advocate">IRS’s Taxpayer Advocate Service.
• If your tax records are not currently affected by identity theft, but you believe you may be at risk due to a lost wallet, questionable credit card activity, or credit report, you need to provide the IRS with proof of your identity. You should submit a copy of your valid government-issued identification, such as a Social Security card, driver’s license or passport, along with a copy of a police report and/or a completed IRS  title="ID Theft Affidavit IRS" href="http://www.irs.gov/pub/irs-pdf/f14039.pdf">Form 14039, Identity Theft Affidavit, which should be faxed to the IRS at 978-684-4542. Please be sure to write clearly.
• As an option, you can also contact the IRS Identity Protection Specialized Unit, toll-free at 800-908-4490. IPSU hours of Operation: Monday – Friday, 7:00 a.m. – 7:00 p.m. your local time (Alaska & Hawaii follow Pacific Time).
• If you have information about the identity thief that impacted your personal information negatively, file an online complaint with the  href="http://www.ic3.gov">Internet Crime Complaint Center.  The IC3 gives victims of cyber crime a convenient and easy-to-use reporting mechanism that alerts authorities of suspected criminal or civil violations. IC3 sends every complaint to one or more law enforcement or regulatory agencies that have jurisdiction over the matter.
• Subscribe to an identity theft detection, protection and resolution product like  title="CSIdentity" href="http://www.CSID.com">CSID.

Mail Safely. A good deal of identity theft takes place while tax documents or supporting material are being sent through the mail. If you are sending your tax return through the mail, follow these steps:

• Walk the envelope inside of the post office and hand it to an employee. Too much mail is stolen out of the blue USPS mailboxes and driveway mailboxes that we use for everything else to make them safe.
• Send your return by certified mail so that you know it has arrived safely. This sends a message to each mail carrier that they had better provide extra protection to the document they are carrying.
• Consider filing electronically so that you take mail out of the equation. Make sure that you have a well-protected computer (discussed above).

Shred and Store Safely. Any copies of tax documents that you no longer need can be shredded using a confetti shredder. Store all tax records, documents and related materials in a secure fire safe. I recommend spending the extra money to have your safe bolted into your home so that a thief can’t walk away with your entire identity portfolio. Make sure that your tax provider appropriately destroys and locks up any lingering pieces of your identity as well. Tax returns provide more of your private information in a single place than almost any other document in our lives. Don’t waste your tax refund recovering from this crime.

title="Bio and Background" href="http://www.thinklikeaspy.com/about-john-sileo/"> style="text-decoration: underline;">John Sileo  style="color: #333399;">is an award-winning author and title="John Sileo's Official Speaker's Website" href="http://www.thinklikeaspy.com"> style="text-decoration: underline;">international speaker style="color: #333399;">on the dark art of deception (identity theft, data privacy, social media manipulation) and its polar opposite, the powerful use of trust, to achieve success. He is CEO of The Sileo Group, which advises teams on how to multiply performance by building a culture of deep trust. His clients include the Department of Defense, Pfizer, the FDIC, and Homeland Security. Sample his title="Video of what John brings to your audience." href="http://www.youtube.com/johnsileo#p/a/u/0/M3Z2PBnr-TE&autoplay=1">Keynote Presentation (he shares how he lost $300,000, 2 years and his business to data breach) or watch him on title="Sileo on Anderson Cooper" href="http://www.youtube.com/johnsileo#p/a/u/1/a16y9mPZIJQ&autoplay=1">Anderson Cooper, title="Sileo on 60 Minutes (International Edition)" href="http://www.youtube.com/johnsileo#p/u/3/kQdDKg0N1DE&autoplay=1">60 Minutes or title="Sileo on Fox Business (The Willis Report)" href="http://www.youtube.com/johnsileo#p/u/2/vVFwdErDa_E&autoplay=1">Fox Business. 1.800.258.8076.

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It’s nerve racking to realize that the IRS increasingly struggles to control taxpayer identity theft. Since 2008, the IRS has identified 470,000 incidents of identity theft affecting more than 390,000 taxpayers. “Victims of tax-related identity theft are the casualties of a system ill-equipped to deal with the growing proficiency and sophistication of today’s tax scam artists” said  Sen. Bill Nelson, who chairs the newly formed Subcommittee on Fiscal Responsibility and Economic Growth.

Identity theft harms innocent taxpayers through (1) employment and (2) refund fraud, according to the GAO. In refund fraud, an identity thief uses a taxpayer’s name and Social Security number to file for a tax refund, which the IRS discovers after the legitimate taxpayer files. In the meantime, the victim is out the money due her, causing Sharon Hawa of the Bronx, N.Y. to take on a second job. Ms. Hawa testified before the Subcommittee, describing how she had become an ID theft victim for the second time in three years (the first in 2009) after thieves twice filed tax returns in her name and received her tax refunds. Painstakingly proving her identity to the IRS, time after time over a 14-month period, was only a small part of the stress and utter frustration in the first fraud.  And  then, as if that trauma hadn’t sufficiently wreaked havoc in Ms. Hawa’s life, it happened a second time.

In employment fraud, an identity thief uses a taxpayer’s name and SSN to obtain a job. When the thief’s employer reports income to the IRS, the taxpayer appears to have unreported income on his or her return, leading to enforcement action. Think of your stress level when you open that envelope from the IRS demanding taxes for money you didn’t earn and don’t have!

The GAO states that the IRS’s ability to address identity theft issues is constrained by several factors, one being that privacy laws limit the sharing of ID theft information with other agencies. Another problem is the timing of fraud detection efforts; more than a year may have passed since the original fraud occurred.  The resources necessary to pursue the large volume of potential criminal refund and employment fraud cases are another constraint.

It’s imperative that we taxpayers take responsibility and implement the steps necessary to protect ourselves. There is very little that is more damaging and dangerous to your identity than losing your tax records. After all, tax records generally contain the most sensitive personally identifying information that you own, including Social Security Numbers (for you, your spouse and maybe even your kids), names, addresses, employers, net worth, etc. Because of this high concentration of sensitive data, tax time is like an all-you-can-eat buffet for identity thieves. Here are some of the dishes on which they greedily feed:

• Tax documents exposed on your desk (home and work)
• Private information that sits unprotected in your tax-preparer’s office
• Improperly mailed, emailed and digitally transmitted or filed records
• Photocopiers with hard drives that store a digital copy of your tax forms
• Copies of sensitive documents that get thrown out without being shredded
• Improperly stored and locked documents once your return is filed
• Tax-time scams that take advantage of our propensity to do whatever the IRS says (even if it’s not really the IRS asking)

title="Bio and Background" href="http://www.thinklikeaspy.com/about-john-sileo/"> style="text-decoration: underline;">John Sileo  style="color: #333399;">is an award-winning author and title="John Sileo's Official Speaker's Website" href="http://www.thinklikeaspy.com"> style="text-decoration: underline;">international speaker style="color: #333399;">on the dark art of deception (identity theft, data privacy, social media manipulation) and its polar opposite, the powerful use of trust, to achieve success. He is CEO of The Sileo Group, which advises teams on how to multiply performance by building a culture of deep trust. His clients include the Department of Defense, Pfizer, the FDIC, and Homeland Security. Sample his title="Video of what John brings to your audience." href="http://www.youtube.com/johnsileo#p/a/u/0/M3Z2PBnr-TE&autoplay=1">Keynote Presentation (he shares how he lost $300,000, 2 years and his business to data breach) or watch him on title="Sileo on Anderson Cooper" href="http://www.youtube.com/johnsileo#p/a/u/1/a16y9mPZIJQ&autoplay=1">Anderson Cooper, title="Sileo on 60 Minutes (International Edition)" href="http://www.youtube.com/johnsileo#p/u/3/kQdDKg0N1DE&autoplay=1">60 Minutes or title="Sileo on Fox Business (The Willis Report)" href="http://www.youtube.com/johnsileo#p/u/2/vVFwdErDa_E&autoplay=1">Fox Business. 1.800.258.8076.

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What is Social Spam?

Nothing more than junk posts on your social media sites luring you to click on links that download malicious software onto your computer or mobile device.

Social media (especially Facebook and Twitter) are under assault by social spam. Even Facebook cautions that the social spam volume is growing more rapidly than their user base. The spam-fighting teams at both Facebook and Twitter are growing rapidly. The previous handful of special engineers has seen the inclusion of lawyers, user-operations managers, risk analysts, spam-science programmers and account-abuse specialists. Spammers are following the growing market share, exploiting our web of social relationships. Most of us are ill-prepared to defend against such spam attacks. Here’s how social spam tends to work:

1. Malware infects your friend’s computer, smartphone or tablet, allowing the spammer to access their Facebook or Twitter account exactly as if the spammer were your friend.
2. The spammer posts a message on your friend’s Facebook or Twitter page offering a free iPad, amazing coupons or a video you can’t ignore.
3. You click on the link, photo, Like button (see Like-jacking below) or video and are taken to a website that requires you to click a second time to receive the coupon, video, etc. It’s this second click that kills you, as this is when you authorize the rogue site to download malware onto your computer (not a coupon or video).
4. The malware infects your computer just like it has your friend’s and starts the process all over again using your contacts, your wall and your profile to continue the fraud.
5. Eventually, the spammer has collected a massive database of information including email addresses, login information and valuable social relationship data that they can exploit in many ways. In the process, the malware may have given them access to other data on your computer like bank logins, personal information or sensitive files. In a highly disturbing growth of criminal activity, social malware can actually impersonate users, initiating one-on-one Facebook chat sessions without your consent.

“Like-jacking” involves convincing Facebook users to click on an image or a link that looks as if a friend has clicked the “Like” button, thereby recommending that you follow suit. If our friends Like it, why shouldn’t we. So we click and download in an almost automated response. The key is to interrupt this automatic reflex before we get stung.

Fighting social spam requires immense investments of time, which can mean lost productivity (and money). Gratefully, various company site-integrity teams watch trends in user activity to spot spam. Every day, Facebook says it blocks 200 million malicious actions, such as messages linking to malware. The company can’t prevent spam, but it’s diligently working to make it harder to create and use fake profiles.

But never count on someone else to protect what is yours. You must Own Up to your responsibility. Follow these 5 Steps to Minimize the Risks of Social Spam:

1. If the offer in the post is too enticing, too good to be true or too bad to be real, Don’t Click.
2. If you do click and aren’t taken directly to what you expected, make sure you Don’t Click a 2nd Time. This gives the spammer the ability to download malware to your system.
3. Don’t let hackers gain access to your account in the first place – use strong alpha-numberic-upper-lower case passwords that are different for every site and that you change frequently.
4. Remember, in a world where your friend’s accounts are pretty easily taken over, not all friends are who they say they are. Be judicious. If something they post is out of character, it might not be them writing the post. Call them and verify.
5. Don’t befriend strangers. Your ego wins, but you loose.
6. Make sure you have updated computer security: operating system patches, robust passwords, file encryption, security software, firewall and protected Wi-Fi connection.

title="Bio and Background" href="http://www.thinklikeaspy.com/about-john-sileo/"> style="text-decoration: underline;">John Sileo  style="color: #333399;">is an award-winning author and title="John Sileo's Official Speaker's Website" href="http://www.thinklikeaspy.com"> style="text-decoration: underline;">international speaker style="color: #333399;">on the dark art of deception (identity theft, data privacy, social media manipulation) and it’s polar opposite, the powerful use of trust, to achieve success. He is CEO of The Sileo Group, which advises teams on how to multiply performance by building a culture of deep trust. His clients include the Department of Defense, Pfizer, the FDIC, and Homeland Security. Sample his title="Video of what John brings to your audience." href="http://www.youtube.com/johnsileo#p/a/u/0/M3Z2PBnr-TE&autoplay=1">Keynote Presentation (he shares how he lost $300,000, 2 years and his business to data breach) or watch him on title="Sileo on Anderson Cooper" href="http://www.youtube.com/johnsileo#p/a/u/1/a16y9mPZIJQ&autoplay=1">Anderson Cooper, title="Sileo on 60 Minutes (International Edition)" href="http://www.youtube.com/johnsileo#p/u/3/kQdDKg0N1DE&autoplay=1">60 Minutes or title="Sileo on Fox Business (The Willis Report)" href="http://www.youtube.com/johnsileo#p/u/2/vVFwdErDa_E&autoplay=1">Fox Business. 1.800.258.8076.

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And then hackers break in to a server in Kentucky this past weekend and steal private information on 24 million Zappos customers, including (if you are a customer) your name, email address, physical address, phone number, the last four digits of your credit card number and an encrypted version (thank goodness) of your password. Consequently, your junk email folder is overflowing (your email has been illicitly sold to marketing companies), you receive the doom-and-gloom breach notification from Zappos (just like I did), and suddenly, you don’t have quite the same confidence in this best-in-practice business any more. Your shaken confidence in Zappos costs them a fortune. For the foreseeable future, you will pause before using their website again.

“We’ve spent over 12 years building our reputation, brand, and trust with our customers,” Zappos CEO Tony Hsieh said in a note to employees Sunday. “It’s painful to see us take so many steps back due to a single incident.”

In a smart move, Zappos reset the passwords for all affected accounts and notified victims on how to create a new one. But their efforts to recover customer trust are just beginning. Here are 5 Core Concepts of Trust that Zappos leadership should weave into their breach recovery process: