Did the Equifax Hack Expose You to Tax Fraud?

If you were among the millions of Americans whose information was stolen in the Equifax data breach, you'll need to protect yourself come tax time next year. Tax return fraud is a perennial problem, but with so many Social Security numbers stolen in the recent hack, it's likely that next year will be particularly bad for this type of fraud.

If a fraudster has your name and Social Security number, he or she can file a tax return in your name and adjust the figures to make it look like the IRS owes you a huge refund. Then the fraudster can list his or her bank account as the destination for said refund. Once the refund arrives, the fraudster empties out the bank account and takes off.

Naturally, that leaves you holding the bag when the IRS comes calling to ask about the inaccurate tax return the fraudster filed for you. The resulting chaos can take months to resolve, which is particularly hard on taxpayers who were expecting (and counting on) a large tax refund.

Continue reading

Source: Fool.com