Identity Theft: It's Not Just For Credit Cards Anymore

In today’s world of big data, an information breach can put sensitive financial data in the hands of people who would use it for fraudulent purposes. One of the most troublesome uses for stolen information is the filing of fraudulent tax returns. In 2015 alone, an IRS hack left the data of more than 700,000 taxpayers compromised. Tax return identity theft presents a harder problem to solve than fraudulent credit card use, because a taxpayer’s social security account is much harder to change. The IRS provides advice on how to protect your personal information in Publication 4524, Security Awareness for Taxpayers.