Americans have expressed concern about their data falling into the wrong hands of scammers, allowing them to orchestrate false tax affairs. Identity theft can enable fraudsters to apply for their financial assets in refunds from a tax return. The scenario relates to almost two-thirds of Americans (64%), a survey by Allstate Identity Protection reveals. The company affords their customers identity protections however the majority of people may be overlooking how they can safeguard their own data to take back control over fraud.
When it comes to a tax return request, fraudsters are pocketing the money first to the horror of genuine Americans. Personal information can be stolen for example a social security number that can be misused in many contexts. 40% of cases where Allstate restored identity protection were reported during the tax season.
Tax season is particularly susceptible to fraud, as well as across sectors like insurance, loans or government; vendors are developing holistic solutions for all verticals which are frequently affected by fraud. With refunds on the line, companies can “help people take control before fraud happens” and prevent years of delays for reimbursements, said Caroline Slane, Senior Vice President of Business Operations at Allstate Identity Protection.
Two-thirds (66%) of Americans say they would pay for identity monitoring services to protect their tax refund from fraud. Installing identity protection technology also saves face for tax companies saving up to $1 million in pay-outs to reimburse customers.
Growing concern around tax fraud is higher than previous years from 445 of customers and with one in five Americans admitting they worry about falling victim this year due to a rise in AI fraud and IRS delays and staffing shortages.
Despite this, one in three Americans (33%) admit they have done nothing to protect themselves from tax-related identity theft.
“The best way to stay safe is to file early, use an IRS Identity Protection PIN and stay alert. Taking proactive steps now can safeguard your personal information and ensure your tax refund stays in the right hands,” Slane said.
