5 Reasons Employers Offer Identity Protection

5 Reasons Employers Offer Identity Protection

by | Jan 11, 2023 | General, Identity Theft

Identity theft is a growing concern for both individuals and businesses. Employers are starting to recognize the importance of offering identity theft protection as a benefit to their employees. As a company, it’s imperative to offer a comprehensive employee benefits package that not only attracts new talent but also helps retain the current workforce. Offering identity theft protection as a benefit is a proactive approach to protecting your employees, their financial well-being, and the company’s reputation, productivity, and compliance. In this article, we will look at the 5 reasons employers offer identity theft protection as a benefit to their employees.

Below you will find 5 reasons employers offer id protection to their employees:
  1. Employee retention: Offering identity theft protection is a valuable benefit to employees, helping with employee retention and recruitment.
  2. Productivity: Employees who fall victim to identity theft may have to spend significant amounts of time resolving the issue. The time spent often leads to lost productivity for the employee and the company. Providing identity theft protection can help employees avoid or quickly resolve identity theft issues, which can help improve productivity.
  3. Employee satisfaction: Providing identity theft protection can help employees feel secure and satisfied with their employer. Both of which can lead to better morale and engagement.
  4. Reputation: Companies that take steps to protect their employees from identity theft can improve their reputation and public image. Employers that care about the well-being of its employees are always held in higher regard.
  5. Compliance: In some cases, certain industries may be mandated to provide identity theft protection to their employees. Employers should look into those regulations and make sure they are compliant

By offering identity theft protection as a benefit, employers can help protect their employees from the financial and personal harm caused by identity theft, while also reaping the benefits of increased productivity, employee satisfaction, and reputation.

Please keep in mind that each company will have different needs and resources. Not all identity theft protection options may be suitable for your company, therefore, it is important to evaluate all options and determine the one that best fit your organization.

It’s important to remember that identity theft protection is not just a cost, but an investment in the well-being of your employees and your company’s success.

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Early Tax Filing Helps Prevent Tax-Related Identity Theft

Early Tax Filing Helps Prevent Tax-Related Identity Theft

by | Jan 4, 2023 | General, Identity Theft

Did you know that individual tax refunds are a popular target for cybercriminals seeking to profit from stolen identities? And that early tax filing helps prevent tax-related identity theft. According to the IRS, tax returns with confirmed cases of identity theft continue to increase year over year. Taking the necessary precautions to protect yourself from tax-related identity theft is important, and filing your taxes early is one of the best ways to help safeguard your identity Discover why the IRS advises taxpayers to file as soon as possible, as well as the most common warning signs of tax-related identity theft.

 

Tax-Related Identity Theft: What Is It?

Tax-related identity theft occurs when a criminal claims a tax refund using a stolen Social Security number in the victim’s name. The victim may spend months correcting false deductions, incorrectly reported income, and other issues with their tax return.

According to the IRS, tax-related identity theft is one of the most prevalent tax scams. It is particularly common during tax filing season when taxpayers are preparing their returns either on their own or with the help of a tax professional. The victim is often unaware of the fraud until their tax return is rejected because a criminal has already filed a return using the same Social Security number.

 

Why the IRS Encourages Early Filing

With good reason, the IRS continues to advise taxpayers to submit their returns as soon as possible.

Because the IRS only accepts one tax return per Social Security number, a taxpayer may be able to beat an identity thief to the punch if they file their legitimate tax return before a potential criminal file their fraudulent one. If, on the other hand, a criminal is successful in filing their fraudulent return first, the victim may have to wait months to resolve issues with the return.

As soon as taxpayers have required paperwork, including W-2s, 1099s, and mortgage interest statements, file as soon as possible. Of course, taxpayers should follow the advice of the financial or tax professional they have retained.

 

Identify the Red Flags

The IRS advises taxpayers to be on the lookout for the following common warning signs:

  • An IRS letter inquiring about a suspicious tax return
  • Rejected E-Filing due to a previous filing using the same Social Security number.
  • The victim received a tax transcript in the mail without asking for one.
  • An IRS notice indicating that an online account in the victim’s name has been created, accessed, or disabled, even though the victim took no action.
  • An IRS notice stating that the victim has been subject to collection actions for a year in which they failed to file a tax return, additional taxes are due, or that their refund has been offset
  • IRS records indicating earnings from an employer unknown to the victim.

 

What Should You Do If You Believe You Are a Victim of Tax Identity Theft

If you believe you are the victim of tax-related identity theft, the IRS, and the Federal Trade Commission (FTC) advise you to take the following steps:

  • Respond to any IRS notice as soon as possible by calling the phone number provided.
  • If your e-filed return is rejected because of an existing filing under your Social Security number, file an identity theft affidavit (IRS Form 14039) electronically at IdentityTheft.gov, or as directed by the IRS. The FTC recommends downloading and saving a copy of the report for your own records.
  • Even if you must mail your tax return, keep up with your tax filing and payment obligations. Notifying the IRS or the FTC about suspected tax identity theft DOES NOT relieve you of the obligation to pay taxes.
  • Consider requesting a copy of the fraudulent return from the IRS with certain details redacted. The information could help you figure out what the thief knows about you and your family.
  • Consider placing a fraud alert, an extended fraud alert, or a credit freeze, as recommended by the FTC.
  • Close any financial or credit accounts that were opened or altered by getting in touch with your financial institutions.

Individual tax refunds are a popular target for cybercriminals seeking to profit from stolen identities. Filing your taxes early is one of the best ways to help safeguard your identity. These protective measures can help you prevent further identity theft and provide peace of mind.  Early Tax Filing Helps Prevent Tax-Related Identity Theft!  Additionally, filing taxes early helps ensure that any refunds are received in a timely manner.

 

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Are Financial Companies Protecting Your Personal Data?

Are Financial Companies Protecting Your Personal Data?

by | Dec 28, 2022 | Breach, Identity Theft

Are financial companies protecting your personal data from Identity Theft and Fraud?

In July, I read that “cumulative merchant losses to online payment fraud globally between 2023 and 2027 will exceed $343 billion,” according to Juniper Research.

Online payment fraud includes losses such as those from digital sales, physical goods, banking transactions, and peer-to-peer payment apps.

I also read a November Consumer Affairs article titled “Scammers are using Facebook Marketplace, Zelle, and PayPal to snare new victims,” where “scammers are impersonating recognized businesses like Amazon, Apple, and other name-brand companies to appear reputable to their target, to then run off with their personal or financial information.”

Consumer Affairs reported, “the top 5 scams were bank/credit card (10.3%), debt/loan (6.6%), and free money (6.4%).”

According to Jim Luff, Corporate Communications Manager at Aurora Payments (a leading payment service and solutions provider), Aurora sent a March 2022 message to its merchants where Aurora Payments explained how the chargeback process is often used to commit fraud by claiming merchandise was not received, misrepresented or the result of “friendly fraud.”

In friendly fraud, online orders are placed by someone known to the cardholder, such as a child using a parent’s credit card without their knowledge. Aurora Payments shares detailed information about chargeback fraud in their merchant message, “The Great Chargeback Surge of 2022. 

Consumer Affairs also reported that “many of the scams target consumers who use peer-to-peer payment services and other platforms connecting users directly to one another” and that “scammers were also “lurking” on P2P cash transfer apps Zelle (86%) and PayPal (31.8%).”

Fortunately, according to this November New York Times article titled “Banks Plan to Start Reimbursing Some Victims of Zelle Scams,” the seven banks that own Zelle (Bank of America, Capital One, JPMorgan Chase, PNC, Truist, U.S. Bank, and Wells Fargo) will now compensate customers who fall victim to certain kinds of Zelle related scams, including fake bank fraud texts, emails, and phone calls.

Which leads me to…

All of the above leads me to the Money20/20 USA Fintech Conference that I attended in October.  It’s the largest global fintech event connecting the payments industry, including issuers (e.g., banks and credit unions providing debit, credit, or prepaid cards to consumers) and payment processors (e.g., Stripe, PayPal, or Square), along with payment networks such as American Express, Mastercard, and Visa.

During the conference, I picked up a copy of The State of Fraud and Financial Crime in the U.S., a survey of 200 financial institutions with assets of at least $5 billion. The surveyed executives held leadership positions in fraud and risk operations, money laundering, fraud strategy, fraud management, and technology and data science.

According to the survey, sponsored by PYMNTS, 62% of financial institutions reported an increase in financial crime year over year. Additional survey highlights included the following:

  • The average cost of scams to each financial institution was $102 million.
  • Fraud rates and losses increased for nearly all payment types in 2021.
  • Smaller financial institutions are getting attacked the most.
  • Authorized and unauthorized fraud types currently appear to be relatively equal, but scams are on the rise within authorized fraud.
  • Criminal approaches are becoming more sophisticated, and most financial institutions consider this to be a problem.

What does all this mean? It means that while consumers are big targets for identity theft, fraud, and scams, financial institutions are bigger targets.

So back to the title of this article: are Are financial companies doing enough to protect your personal data from Identity Theft and Fraud? My answer is threefold: 
  1. First, and based on my experience at the Money 20/20 Conference, I believe the payments processing industry is doing a good job managing fraud prevention to help make payment transactions safer for both consumers and businesses.
  2. Second, Zelle’s proposed rule change for early next year requiring the network’s member banks to compensate customers who fall victim to certain kinds of scams is very positive.
  3. Finally, based on the reality of bad actors such as nation states, cyber thieves, and identity theft criminals, the financial services industry will continue to be heavily targeted by identity thieves due to a large consumer account base and the significant amount of personal data these institutions collect and store.

by Mark Pribish

Practice Leader, Identity Theft, and Data Breach Services

43% of Breaches Affect Small Businesses
Why Provide Identity Theft Protection as an Employee Benefit?

 

 

Holiday Travel Fraud is Here

Holiday Travel Fraud is Here

by | Dec 19, 2022 | General, Identity Theft

A favorite holiday tradition is visiting family while on the road. But we must be careful not to reveal our identities to everyone as we go about spreading holiday cheer. Holiday travel fraud is here and there are some things you should do to prepare.

Because of all the holiday commotion, gift givers, shoppers, and travelers can be a treasure trove for identity thieves who know you might be letting your guard down. If you’re anything like me, you struggle to stay within your budget; however, don’t give the bad guys access to every aspect of your life and finances.

Here are a few things to keep in mind before you crack open the eggnog!

  • Put your mail on hold; arrange to have all important documents delivered electronically. Additionally, contact the post office to have your mail held.
  • Social media: This one is hard!  We all want to share our fun with the world, naturally.  You also tell the world when you are not at home and how long you will be gone.
  • Check your credit cards and bank accounts. Keep track of the charges and amounts on your accounts and credit cards. You can also set up alerts to let you know when certain spending or account limits are met.
  • Clean out our wallet:  Remove all but the necessary forms of payment from our wallet. It is simpler to remember which cards you have and quicker to limit your exposure if your purse or wallet is stolen.
  • Public WiFi:  open access WiFi is never a good idea, period.  Open WiFi while on vacation is a bad idea because it is exactly the environment the bad guys are looking to exploit.  We strongly suggest using a VPN while on any network that is not yours! Read more here: Public WiFi is Putting You at Risk
  • Use hotel safes: Place anything that has personal information on it that you don’t need in the room safe. This way, it isn’t on your person and reduces the risk of it being lost.
  • Protect your phone: It seems like we should not have to say this, but if you do not have a password or biometrics on your phone, set them up before you go.

We can’t guarantee that doing this will stop identity theft while traveling or at other times. However, we can affirm that these are always excellent habits to adopt. Do what you can to lessen your chances of experiencing identity theft while traveling for the holidays.

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4 Things to Watch Out for this Holiday Season!

4 Things to Watch Out for this Holiday Season!

by | Dec 14, 2022 | Identity Theft, Uncategorized

4 Things to Watch Out for this Holiday Season!

Oh, what a year it has been and continues to be this holiday season!  Unfortunately, in this continued craziness, bad guys tend to take advantage of anyone they can.  They also are opportunistic during the holidays.  Both being an issue right now provides a great opportunity for deceit and fraud.  We encourage you to take the time this year to ensure you are being safe with your generosity and activities online and off.  Below you will find 4 things to watch out for this holiday season, coupled with the pandemic.

  1. Online shopping Scams!

    This year more than ever, holiday shoppers will
    be purchasing online. According to the Better Business Bureau, online
    shopping is expected to increase over the last year by 10% to 75%. Watch out
    for “locked out” messages claiming you have been locked out of your
    accounts. The bad guys are sending phishing emails in an attempt to
    steal your account information.

  2. Charitable Giving Scams.

    Giving scams are always increased around the
    holidays but due to more families needing help in 2020, it is likely that there
    is a large increase in donations and scams. COVID scams are going to
    continue and the holidays are a great way for criminals to take advantage of
    your giving spirit. Make sure you are giving to a reputable organization.

  3. Use Secure Payments Use your credit card online, it has more protection
    than your debit card.

    Credit cards have better dispute protections where
    debit cards can expose your bank accounts to withdrawals. Use Credit cards
    for transactions, they provide more protection if you have made a
    transaction with a criminal.

  4. Ads and Offers Scams.

    You will see many ads and offers on platforms like
    Facebook and Instagram this holiday season. Before you purchase through
    an ad or offer, research the company for anything scam-related
    “Peace of Mind with a Place to Turn”

These 4 things to watch out for this holiday season are just some of the scams out there.  Please take care in your efforts to spread holiday cheer and think before you click.  We wish you the happiest of holidays!

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Gift Card Fraud During the Holidays

Gift Card Fraud During the Holidays

by | Dec 8, 2022 | Breach, Identity Theft

Gift card fraud rises during the holidays every year. So many of us love buying and using gift cards as gifts. They are practical, simple to purchase, simple to use, and simple to give as gifts. They typically let the recipient choose exactly what they want, and they are frequently given as rewards for actions.

According to estimates, the market for gift cards is worth hundreds of BILLIONS of dollars. Nobody dislikes receiving a free gift card, right? BUT, gift cards are unfortunately frequently used by con artists to defraud their victims of money.

There are many ways gift cards can be used by scammers, here are the top three, as noted by KnowBe4:

You Have to Use Gift Cards to Pay a Bill

One very typical scam involves a potential victim being contacted by someone, usually via voice call (although it can also be done via text message or email), and being informed that either their regular payment to a reliable service has been declined or that there is a new emergency charge. A good illustration of the former is when a con artist calls pretending to be the victim’s electric company. They will claim that the victim’s regular electricity payment was rejected and that unless they visit a store and pay the bill with gift cards, their electricity will be turned off in a matter of hours. Who would use gift cards to pay their electricity bill? You would be shocked. A who’s who of medical professionals, attorneys, and even law enforcement. People who previously thought they were too savvy to get scammed are often on the victim list.

A good illustration of the latter scam is when a caller pretends to be from the IRS or law enforcement and informs the victim that they owe an unpaid fine and that they will be arrested if they don’t pay right away. Who would think that the police or the IRS would take gift cards as payment for a fine? Once more, a higher proportion than you might guess.

How can you avoid this scam?

There is a very high chance that a request for an emergency payment is fraudulent, especially if it involves gift cards. If the caller is willing to provide their contact information, you can take it. If you ask them for their contact information, they typically hang up the phone immediately. In either case, get in touch with the company. Using a known phone number or email address and inquire about how to confirm the request’s legitimacy. The legitimate company will put you in touch with their billing department so you can confirm the request and pay the bill if it is genuine.

Gift Cards That Have Been Maliciously Modified in Stores

In this scheme, thieves steal department store gift cards, discover their personal PIN numbers, and then put them back on the shelves where a victim will find them. The fraudster can frequently spend the value of the gift card faster than the victim when the victim purchases the previously tampered with card and activates it. To find out when the gift card is activated and how much money is still on it, the fraudster can repeatedly call the store’s gift card number.

How can you avoid this scam?

When you purchase a gift card, check to see if it has been tampered with in any way. Choose gift cards from the bottom of the stack; this is not foolproof but may help. Most major retailers who use gift cards are aware of these scams, and many will you to guard against them. Some of them may even offer to reimburse you if you lose money.

“Win a free gift Card!”

This is a huge scam, particularly during the holidays. It’s a common gimmick to offer “Win a free $100 Amazon Gift Card!” Either you are required to download and run a file to “transfer” the gift card to you, or they will request personally identifiable information from you, such as your social security number or bank account information. There are thousands of legitimate circumstances where anyone can win a free gift card, which makes this particular phishing scam effective.

These scams can be easy to recognize because, despite the fact that they purport to be from a well-known, reputable company, the gift card URL, phone number, or email address is not from that company. Instead, they appear at random in emails or texts. But, again, this can be challenging because many trustworthy businesses hire outside contractors to handle their real free gift card distribution. It’s possible that the URLs, phone numbers, and email addresses you see don’t correspond to the actual, legitimate vendors.

When the offer is simply too good to be true, it more than likely is.

There are tons Gift Card Frauds During the Holidays. It’s typically a scam if someone contacts you and demands that you use a gift card to pay a bill. Simply ignore them if you can’t positively, unquestionably confirm that the gift card reward or request is legitimate or that a card hasn’t been tampered with. A $100 gift card is not worth the risk of losing your bank account and personal information.

Here is some guidance from the FTC regarding gift card fraud.

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