Affinion Security Center Survey Finds Taxpayers are Vulnerable to Tax- and Employment-Related...

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Tue Mar 24, 2009 8:03am EDT

Affinion Security Center Survey Finds Taxpayers are Vulnerable to Tax- and
Employment-Related Identity Theft

Phishing, Vishing and Unscrupulous Tax Preparers Pose a Threat

NORWALK, Conn., March 24 /PRNewswire/ -- Tax time will unfortunately bring
more than a refund check to many taxpayers this year.  Affinion Security
Center, a leading provider of identity theft protection, detection and
resolution services, recently conducted a survey of 1,000 adults to determine
the level of awareness and concern that exists for tax- and employment-related
identity theft. Overall, the findings revealed that taxpayers have a lack of
awareness and only moderate levels of concern, leaving them vulnerable and
unprotected against these growing threats.

Taxpayers Vulnerable to Phishing and Vishing Tax Scams and Unscrupulous Tax
Preparers

When asked how the IRS contacts taxpayers regarding their tax returns, 53
percent did not respond correctly. 23 percent of those responded that they did
not know the ways the IRS contacts taxpayers regarding their tax returns,
while 22 percent thought that the IRS could call or email them. Additionally
three percent thought the IRS could contact them on the telephone and five
percent would not be surprised to receive an email from the IRS.

Because so many respondents did not know that the IRS does not send
unsolicited emails or make unsolicited phone calls regarding refunds or
filings, they are vulnerable to phishing or vishing (voice phishing using the
telephone) scams where thieves pose as IRS agents to gain personal information
such as social security or bank account numbers. The IRS warned taxpayers
about several of these scams in 2008. In fact, the recently released annual
Fraud and Identity Theft Compliant data from the Federal Trade Commission
(FTC) showed an astounding 85 percent increase over 2007 in complaints related
to fraudulent tax refund filings in 2008.

The survey also showed that 1/3 of the respondents who rely on the services of
a tax preparer were not at all concerned about the possibility of becoming
victims of identity theft when choosing their preparer. An additional 23
percent were somewhat concerned and only 18 percent were very concerned.

"While identity theft is a cause for concern all year long, tax season is a
particularly dangerous time," said Tom Rusin, president of Affinion Security
Center. "Our goal with conducting this survey was to uncover potential
vulnerabilities and to help educate people on the dangers that exist and the
steps that they can take to try to avoid falling victim to identity thieves
and fraudsters."

Employment-Related Identity Theft

Another type of identity theft that often comes to light during tax season is
employment-related identity theft which can include someone stealing another
person's social security number in order to obtain employment.  The Affinion
Security Center survey found that while the majority of those surveyed were at
least somewhat concerned, almost 40 percent were not at all concerned that
they could become victims of employment-related identity theft.  This is a
troublesome discovery, as the recent FTC data revealed a 30 percent increase
in complaints of employment-related fraud in 2008.

The Affinion Security Center would like to help educate consumers and provide
the following tips on how to Prevent Identity Theft During Tax Season:

When Preparing Your Return
    1. Be Aware of Suspicious Emails and Phone Calls Regarding Your Tax
Refund,
       Tax Filing or Any Stimulus Checks - Check the IRS website for tips on
how
       to spot scammers and thieves posing as the IRS and a list of known
       phishes.
    2. Be Diligent When Choosing Your Tax Preparers - Ensure that you are
       working with a credible firm and be extra cautious about new or
seasonal
       offices. Check the IRS website for more tips on how to choose a tax
       preparer.
    3. Secure your computer - Many people file taxes electronically. If you
are
       one of those, be sure to install updated firewalls and anti-spyware
       protection to help keep your personal data out of the hands of thieves.



During and After Filing
    1. Mail securely - If you file via mail, be sure to mail your return
       directly from the post office - do not leave your tax return in your
       unlocked mailbox or at the curb for pickup by your local mail carrier. 
       Your personal information will be vulnerable until it is retrieved by
the
       postal carrier.
    2. Safeguard Sensitive Information in Home and Outside - Frequently the
       greatest threat to personal information comes from service providers or
       in-home workers or acquaintances.  Keep paperwork in a safe location.
       When carrying this information out of the house, be sure to keep it on
       you or make sure if you leave it in the car, it is not visible.
    3. Micro-Shred Your Documents - Cross-cut shredders just don't
       "cut" it these days. Use a micro-cut shredder for maximum
       security. The shred size on micro-cut machines is much smaller -
       documents are literally turned into dust, offering the highest level of
       security. And since even a seven year- old receipt can be used by a
       thief, shredding is still one of the simplest ways to prevent identity
       theft.



Consider Identity Theft Protection Services 

For extra identity protection, taxpayers should consider enrolling in an
identity theft protection program such as IdentitySecure.

The survey of 1,091 adults was conducted on behalf of Affinion Security Center
by Greenfield Online, Inc. in February 2009.

About Affinion Security Center 

Affinion Security Center, a division of Norwalk, Connecticut-based Affinion
Group, is a global leader in providing identity protection and data security
solutions to corporations and individuals. For over 35 years Affinion Security
Center has been powering many of the world's leading personal data protection
and breach resolution solutions offered by local, national and multi-national
enterprises in the financial, retail and travel industries. The company
currently protects over 7 million subscribers with services including
IdentitySecure, PrivacyGuard, PC SafetyPlus and Hotline, and serves enterprise
and government agencies with the data breach preparation and response tool,
BreachShield. Affinion Security Center is part of the steering committee of
the Identity Theft Prevention and Identity Management Standards Panel (IDSP)
and is a member of the Staples Security Council. For more information please
visit www.affinionsecuritycenter.com.


SOURCE  Affinion Security Center

James Hart, Affinion Group, +1-203-956-8746, jhart@affiniongroup.com; or Sari
Martin, ICR, Inc., +1-203-682-8345, sari.martin@icrinc.com
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