Beware of Tax Rebate Scams

The stimulus checks are in the mail, and the scam artists are on the prowl. With the government's tax rebate checks now arriving at the homes of Americans, identity thieves are hitting consumers with a new scheme.

The goal for the government's stimulus checks is to jump-start the economy. Unfortunately, the checks may help identity thieves to jump-start new cons. The Internal Revenue Service and the Federal Trade Commission are reporting a sharp uptick in the number of new scams, and consumers need to be particularly wary of giving out any personal information.

Beware of the posers

While the methodology being used by the scam artists is not entirely new-fraudulent phone calls and emails-it's the message that's changed. Reports indicate that people posing as IRS agents are contacting consumers, and asking for bank account information or Social Security numbers. The "agents" indicate that there's been a problem sending the rebate check, and a taxpayer's bank account information is needed to process the money. If the taxpayer volunteers the information, the con artist takes the account number and commits identity theft.

The IRS has made clear that its agency would never ask for bank account information. The only exception is when you're filing a tax return and want to use a direct deposit option for your refund. In that case, you'll note your account number on your filing form, but it's never given out over the phone.

Protecting yourself from identity theft

While the messaging behind identity theft may have changed, the methods for protecting yourself remain the same. First and foremost, never give out any financial information in response to an email or phone call. No credible financial institution will ever ask you to click through an email to provide personal information. If you're confused, simply visit the company's website, or call the customer service department.

Consider using credit score protection services. For a small fee, a credit bureau will notify you whenever a new account is opened, or a dramatic increase in funds appears on your credit record. This service could prove invaluable, and any one of the three credit bureaus (Experian, TransUnion, Equifax) offers this kind of protection.

You can also order a free credit report from each of these bureaus every year. Carefully examine all the details on the report, making sure that all the data is legitimate. Staying on top of the details will help you notice any changes that occur, a smart move even if you use a credit bureau's protection service.

Stimulating scams

The fiscal stimulus package for taxpayers might prove to be a stimulus gift for scam artists, too, as they take every opportunity to steal personal identity information. The scam artists are using familiar tools-telemarketing and emails-but they're asking questions related to the stimulus checks to hook new victims. Don't fall for it. Instead, protect yourself with common sense and established ID theft prevention tactics.