How to Prevent Tax Identity Theft

Identity theft has become one of the most common cybercrimes. As we enter tax season, scammers are preparing to make their next move. According to Equifax, “tax-related identity theft happens when someone steals your Social Security number and uses it to file a tax return and claim a fraudulent refund.” To avoid the strain that comes along with tax identity theft, check out Nutmeg Technologies top tips.

UNDERSTAND THE RED FLAGS

One of the best ways to prevent yourself from becoming a victim of tax identity theft is to know the warning signs. Some popular ways that cybercriminals try to steal your personal identifiable information (PII) is through pretending to be the IRS and requesting personal or financial information. They often do this by calling you with threats of lawsuits or arrests if this information isn’t provided. The IRS has announced that they will never initiate contact in these ways and to contact them directly if you are ever uncertain.

SECURE YOUR PASSWORD

Having a hard to guess password that contains a mixture of numbers, characters, uppercase and lowercase letters can go a long way in terms of keeping an unwanted person out of your financial accounts. See below for the best practices according to the IRS:

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