What The Tech: How to protect your tax refund from scammers
BY JAMEY TUCKER, Consumer Technology Reporter
We all dread tax season. The paperwork. The deadlines. The math.
Scammers, on the other hand, treat it like a holiday.
Every year, criminals use stolen Social Security numbers and personal information to file fraudulent tax returns. They file before the real taxpayer does, claim the refund, and disappear.
Most victims only discover the fraud when they try to file their own return and are told it has already been submitted.
The good news? There’s a simple, free way to protect yourself. And it’s just six numbers.
What Is an Identity Protection PIN?
The Internal Revenue Service offers something called an Identity Protection PIN, or IP PIN. It’s a unique six digit number issued to you and known only by you and the IRS.
When you file your tax return, you must include this PIN. Without it, the IRS will reject the return. That means even if a scammer has your name and Social Security number, they cannot successfully file a return in your name without your IP PIN.
If you use a tax professional, you simply provide them with the number when they file on your behalf.
Why This Matters More Than Ever
Recent data breaches have exposed massive amounts of personal information, including Social Security numbers. Once that information ends up for sale online, criminals can use it to file fraudulent tax returns and grab refunds before victims even realize what happened.
According to the IRS, fewer than 10 percent of taxpayers currently use an IP PIN. That leaves a lot of people unprotected. And the scale of the problem is significant.
Last year, the IRS flagged more than one million tax returns for possible identity theft, representing roughly six billion dollars in refunds.
How to Get Your IP PIN
Getting an IP PIN is free and takes only a few minutes.
1. Go to IRS.gov
2. Click on “Your Online Account”
3. Create or log into your account
4. Follow the steps to request an Identity Protection PIN
You’ll receive your six digit PIN right away.
One important note: if you had an IP PIN in a previous year, you may be issued a new one.
Make sure you use the current year’s PIN when filing.
A Small Step That Makes a Big Difference
Tax fraud can take months to unravel. It can delay your refund, require extra paperwork, and create serious stress.
Six numbers may not make tax season fun. But they can make it a lot safer.
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