Identity Theft and Phishing Don’t Take the Bait

Identity theft has been described as one of the fastest growing crimes in the country, recently listed by the IRS as one of the top five tax scams. In just two years, the IRS saw the number of tax fraud cases increase from 50,000 in 2008 to 250,000 in 2010. That number is likely to grow, as both tax fraud and identity theft may go unnoticed for some time before being discovered.Identity theft occurs when an individual’s personal information is used by others for their own financial gain, at great cost to the victim. Your identity can be stolen by anyone who is able to secure access to your personal information. Identity thieves can obtain your information by stealing or copying important documents, accessing electronically stored information, or by deception in the form of phishing.Phishing is a technique used by would-be identity thieves to trick consumers into sharing their personal information. Phishers pose as a legitimate organization or company that the target would be familiar with, such as a bank, an e-merchant, or a charitable organization. You may receive an email asking you for your password for “security reasons,” or directing you to a seemingly official webpage where your personal information is collected on the pretense of receiving free products, employment, or large sums of money. Though many phishing scams of the past, such as the “Nigerian Prince” scam, were more easily identifiable as suspicious and possibly fraudulent, today’s phishers are far more sophisticated, and many are deceived by these attacks.Follow these guidelines to protect yourself from phishers:

Do not open emails, download attachments, or click on links from people that you do not know. Mark these emails as spam.
If you are on a website which you did not go to directly and you are asked for your personal information, check to view the site’s security certificate. Do not provide any personal information on a website that does not have a valid security certificate.
Use secure passwords that contain no dictionary words, are at least 8 characters long, and contain both letters, numbers, and special characters such as or & if possible. Choose a different password for each account, so that if one account is compromised, the other accounts will not be at risk.
Don’t buy into offers that promise to give you money in exchange for your personal information, and always be suspicious of unsolicited job offers or even unexpected tax refunds. Trust your instincts — if an offer sounds too good to be true, it is probably a scam.
Never fill out forms requesting personal information within an email, even if the email appears to be from a company you trust.
The government is taking steps to combat identity theft, and you can report phishing sites by sending an email to phishing-report@us-cert.gov. The IRS has a 3949-A form that you can fill out online to report any fraud activity or suspicions of being scammed. If you think that your identity has been stolen, report your case by contacting the Free Trade Commission on 1-800-ID-THEFT.