Identity Theft and Tax Return Fraud is the new scam of the decade.  With the use of technology in conjunction with the Internet the ease at which thieves are able to access and use your personal information is growing each day.

The IRS identified nearly 642,000 cases of identity theft just last year and the numbers are growing.  These numbers have nothing to do with cases that aren't reported, related to tax returns, or cases that were not identified.  Some of you could be victims of identity theft and don't even know it yet.

There are countless ways a thief can obtain or access your personal information and use your identity to either file your tax return, apply for credit cards in your name, or even apply for student loans.

No measure of security or caution will totally remove the risk of your becoming a victim of identity theft.  However, here are a few things that will definitely help lessen your chances of becoming a victim of tax return fraud or identity theft:

• Do NOT give your credit card or social security number to anyone who initiates contact and solicits goods or services to you over the phone or by email
• Do not give your personal info or credit card number to people who claim they are going to remove a virus from your computer
• Use a paid email service provider
• Shred your personal information before you throw it away
• Be careful who you wire money to
• If you are going to use a public computer make sure you log off, never check "remember me" when you log in and clear your password from the screen before you walk away
• Make sure your WiFi network is secure
• Change your computer passwords every few months
• Research any charity before giving them your money or information
• Do not reply to emails asking for personal information (they usually pose as your bank or credit card company
• Check your credit once a year for unusual activity

That being said, I know a lot of you worry about online banking and paying your bills electronically.  Online banking sites are very secure and I have yet to hear about one of them being hacked into - anything is possible, but banks work to make sure their sites are secure.  The same goes for online bill pay websites such as your local electric company's site. 

Before you invest in an expensive identity theft protection service, make sure they aren't doing for you what you can do for yourself.  As I mentioned earlier, there is no such thing as totally removing the possibility of becoming a victim of identity theft but you can reduce your risk by following these suggestions.

To read more about tax return fraud and identity theft.