Safeguard Your Identity: 15 Strategies to Shield Yourself from Identity Theft and Tax Fraud
Identity fraud surged during the summer of 2024, resulting in a significant economic and personal impact for numerous victims. According to the Javelin Strategy & Research 2025 Identity Fraud Study, consumers lost a staggering $27.2 billion to identity fraud that year, marking a 19% increase from the previous year.
This rise in identity fraud can be attributed to a multitude of factors. These include an increase in cyber attacks and data breaches, particularly those involving cloud service providers and data brokers. Summer months, in which spending is often high, appear to be peak times for identity fraud incidents.
To protect themselves, consumers can follow these 15 tips:
- Recognize that public Wi-Fi networks can pose a risk to the security of personal data. Avoid connecting to unknown or unstable networks. When possible, opt for cellular data or verify the Wi-Fi connection's legitimacy before accessing sensitive information.
- Properly safeguard paper documents, such as credit card statements, bank receipts, and copies of tax returns. File copies for retention and securely shred the rest.
- Keep your mailing address current to prevent mail being delivered to the wrong hands. Inform financial institutions, credit reporting agencies, and tax authorities when moving. Additionally, file Form 8822, Change of Address, with the IRS or use your new address on your tax return. Be sure to also update your address with the US Postal Service.
- Regularly check bank and credit card statements for suspicious activity and double-check transactions you cannot recall.
- Be cautious about providing personal information online. Only share necessary details with companies, and double-check their privacy policies to understand how your information may be shared with third parties.
- Use secure passwords and update them regularly. Be mindful of common passwords to avoid using easily guessable options. Password generators are valuable tools for creating strong, unique passwords.
- Activate multi-factor authentication (MFA) when available. This adds an extra layer of security to your online accounts by requiring a password, as well as additional steps, like entering a code from a phone or app.
- Be wary of games, quizzes, and memes that request personal information. Steer clear of providing sensitive details, even if they seem harmless.
- Be aware of phishing scams and other fraudulent attempts, particularly those appearing to originate from banks, credit card companies, or federal agencies. Avoid clicking links or opening attachments from suspicious emails.
- Limit the sharing of your Social Security number, as it remains a valuable target for identity thieves. Determine whether the company genuinely needs the Social Security number before providing it.
- Regularly monitor your credit report. This will enable you to spot any unauthorized activity. You are entitled to one free copy annually from each of the major credit bureaus (Equifax, Experian, and TransUnion).
- Keep an eye out for fraud alerts from your bank, especially for international transactions.
- Freeze your credit by contacting each of the three major consumer credit reporting agencies (Equifax, Experian, and TransUnion). This restricts access to your credit report and helps prevent the opening of new accounts in your name.
- Set up fraud alerts for your bank accounts and credit cards.
- Consider designating a trusted contact at your financial institution who can assist in identifying and resolving fraudulent activity if you become unresponsive or incapacitated.
While diligence is a strong defense against identity theft, the reality is that no one is completely immune. As third parties have access to personal data, everyone remains vulnerable. In the event of data compromise, work to minimize the damage by alerting your financial institution, taking steps to secure accounts, and potentially freezing your credit.
Victims should also file a complaint with the Federal Trade Commission at identitytheft.gov and, if applicable, file Form 14039, Identity Theft Affidavit, with the IRS.
For additional resources on tax-related matters, visit Forbes.com.
[Sources: 1, 2, 3, 4, 5]
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Tax fraud and identity thefts are significant concerns within the realm of personal-finance, especially cybersecurity, accentuated by the rise in scams, id-related theft, and scammers. For instance, identity fraud cost consumers an alarming $27.2 billion in 2025, marking a notable 19% increase from the previous year. To safeguard yourself from such fraud, follow ways presented in the above tips, which include implementing cybersecurity practices like securing passwords, creating fraud alerts for bank accounts and credit cards, freezing credit, and staying vigilant of phishing attempts.
