Couple Victims of Tax Refund ID Theft

A Green Brook resident filed a report of identity theft at 7:06 p.m. July 2, following up on news received earlier this year when he and his wife attempted to file their income tax return for 2011.

According to the police report, the couple's tax return was rejected because a return had already been field under their social security numbers. The IRS reported someone attempted to obtain an $8,000 tax refund due the victims, and is investigating the theft.

Such cases of identity theft have been increasing in frequency in recent years, according to the IRS. The Huffington Post reported in April that the number of such cases jumped from less than 50,000 falsified returns in 2010, representing $247 million in claims, to 262,000 returns, with $1.4 billion at stake, in 2011.

While victims usually eventually obtain any refunds due, it can take months and require numerous claims and documents be filed.

In an article about identity theft Warren Patch reported last year, Mike Prusinski, vice-president of corporate communications for an Internet security firm Lifelock, pointed out identity theft enabled by having a victim's social security number can be much more serious and difficult to straighten out.  He said credit card theft represents the tip of the identity theft iceberg, accounting for about 15 percent of the crimes. Prusinski said the much bigger identity theft crimes are committed using Social Security numbers to obtain employent, medical treatment or tax refunds.

The Post article also noted fully 25 percent of identity theft cases reported in 2011 were related to tax and wage claims, according to the Federal Trace Commission, double the rate from 2008.

There is a one way to avoid being victimized, according to Jamie May, chief investigator with AllClear ID, a security company that specializes in identity theft.

"The best piece of advice is to file early," she told the Huffington Post in April, but at least one Warren resident found that may not be early enough: a Liberty Village Drive resident reported discovering her identty had been stolen when filing for a refund at the end of January. "but that ship has sailed."