Consumers are increasingly aware of and concerned about tax-related fraud
New survey from Experian reveals that despite the growing concern over identity theft and fraud, consumers are not taking enough precautions to protect themselves
New survey from Experian reveals that despite the growing concern over identity theft and fraud, consumers are not taking enough precautions to protect themselves
COSTA MESA, Calif., Jan. 25, 2016 /PRNewswire/ -- Consumer awareness of identity theft and tax-related fraud is on the rise this year, and along with it increased concerns over becoming a victim. Experian recently surveyed consumers nationwide for its annual tax study, focusing on a number of tax related topics including filing habits, identity theft and what they are doing to protect themselves this tax season.
The number of survey respondents familiar with identity theft and tax fraud has risen almost 20 percent over the past two years, to 76 percent. This is compared with only 57 percent in 2014 and 63 percent in 2015. In addition, 42 percent of respondents are now concerned that someone could access their personal data through their tax return, compared to only 35 percent in 2014 and 38 percent in 2015.
"Tax season is a busy time of year for identity thieves," said Michael Bruemmer, vice president, consumer protection, at Experian. "Those filing taxes, especially electronically, should educate themselves on what precautions need to be taken, and what assistance is available to them if they become a victim of identity theft."
According to the survey, 28 percent of respondents have been a victim or know someone who has been a victim of tax fraud. Those who have been affected most commonly file a police report (59 percent) and place a fraud alert on their credit reports (58 percent).
Despite the number of people affected by tax fraud, almost half of respondents (45 percent) aren't aware of the IRS-issued Identify Protection PIN. An IP PIN is a unique number assigned to eligible taxpayers that helps prevent the misuse of their Social Security number and protects against thieves attempting to file fraudulent federal income tax returns. Furthermore, only 30 percent of actual victims surveyed requested the IRS-issued IP PIN last year.
Even though the concern over tax fraud has grown significantly, a majority of survey respondents aren't planning to take the IRS recommended steps to protect themselves. Only 12 percent are planning to check their credit report, an important first step in monitoring for fraudulent activity that could indicate identity theft. Also, a mere 6 percent will file their taxes on a computer with up-to-date antivirus software.
Other key survey findings:
Tax filing continues to be increasingly electronic
Of the 56 percent of respondents who prepare their own taxes, most do so on their home network
Most respondents (80 percent) expect to receive a tax refund and plan to use it to increase their personal savings or pay down credit card debt
Actions consumers can take to protect themselves
For the survey report, and to learn more about tax identity theft and other credit topics, please visit the Ask Experian blog at http://www.experian.com/blogs/ask-experian/2016/01/22/tax-time-and-id-theft-survey-results/
About the survey
The online survey was conducted by Edelman Berland on behalf of Experian from January 1 to 5, 2016, among 1,000 adults ages 18 and older who reside in the United States. This online survey is not based on a probability sample; therefore, no estimate of theoretical sampling error can be calculated. For complete survey methodology, including weighting variables, please contact [email protected].
About Experian Consumer Services
Experian Consumer Services, a part of Experian®, provides credit monitoring and other informational products, such as identity protection, to millions of consumers via the Internet. The organization enables consumers to monitor their credit reports online, check their FICO® Scores and protect against identity theft. Its products include Experian Credit TrackerSM and ProtectMyID.
Experian Consumer Services has established integrated, cobranded relationships with leading online financial destinations that provide consumers with a broad range of comprehensive online financial products and information essential to managing one's financial life. For more information, visit http://www.experian.com.
About Experian
We are the leading global information services company, providing data and analytical tools to our clients around the world. We help businesses to manage credit risk, prevent fraud, target marketing offers and automate decision making.
We also help people to check their credit report and credit score, and protect against identity theft. In 2015, we were named by Forbes magazine as one of the "World's Most Innovative Companies."
We employ approximately 17,000 people in 37 countries and our corporate headquarters are in Dublin, Ireland, with operational headquarters in Nottingham, UK; California, US; and São Paulo, Brazil.
Experian plc is listed on the London Stock Exchange (EXPN) and is a constituent of the FTSE 100 index. Total revenue for the year ended March 31, 2015, was US$4.8 billion.
To find out more about our company, please visit http://www.experianplc.com or watch our documentary, "Inside Experian."
Experian and the Experian marks used herein are trademarks or registered trademarks of Experian Information Solutions, Inc. Other product and company names mentioned herein are the property of their respective owners.
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SOURCE Experian Consumer Services
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