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Identity theft, much of it tax-related, once again tops Federal Trade Commission’s annual consumer complaint list

March 8, 2013

Identity theft complaints lead the Federal Trade Commission's annual list of consumer concerns for the 13th straight year.

The just-released report, which is compiled from the Consumer Sentinel Network's online database of consumer complaints available only to law enforcement, covers consumer kvetching in 2012.

And last year marks the first year in which more than 2 million
total complaints were logged.

Eighteen percent of those were related to identity
theft. And of those, more than 43 percent were connected to tax- or wage-related
fraud.

Government Documents or Benefits Fraud 2012 FTC annual report

Complaints about government documents and benefits fraud increased 27
percentage points since calendar year 2010, according to the latest
report. The FTC noted that tax or wage-related fraud accounted for the major growth in this area.

The report confirms what the Internal Revenue Service has acknowledged. The
IRS says the number of identity theft cases has doubled each year in recent
years.

National Taxpayer Advocate Nina Olson concurs. "Our cases have increased by about 650 percent since 2008," says Olson.

Don't be a tax scam victim: The reason for the increasing tax-related ID theft? Too many of us are still falling for tax scams.

Remember, the IRS does not initiate contact with taxpayers via email. The folks doing that are crooks who are trying to get you to tell them your personal tax and financial information. Or they want you to click on a link that will use computer malware to steal that data.

The IRS has a special Web page with tips on protecting your tax identity, including avoiding email phishing scams designed to get you to reveal tax and personal financial data.

If, however, a criminal does get your personal info and file a fraudulent return in your name, as soon as you discover the crime, let the IRS know.

You likely will first learn of the ID theft when you receive a notice from IRS that someone has already filed a tax return in your name. When you get that communication, respond immediately to the name and number printed on the notice or letter. 

You
will then need to fill out the IRS Identity Theft Affidavit, Form 14039. 

And if you run into difficulty in trying to resolve fake tax filings, contact the IRS Identity
Protection Specialized Unit (IPSU) toll-free at 1-800-908-4490. That office is open Monday through Friday from 7 a.m. until 7 p.m. your local time. Alaska and Hawaii taxpayers, please follow Pacific Time when making your calls.

ID theft hot spots, targets: And just where did the FTC report find identity theft the most prevalent?

Tax fraud runs rampant in Florida. The Sunshine State has the highest per capita rate of reported identity theft complaints, followed by Georgia and California.

Residents of South Dakota, North Dakota and Hawaii lodged the fewest ID theft complaints in 2012.

And despite worries by those of us with older parents, senior citizens (many of whom have retired to Florida) don't appear to be prime identity theft targets.

Identity Theft Complaints by Victim's Age
Jan. 1 through Dec. 31, 2013
2012 ID theft victims by age FTC concumer complaints report

It appears that that old age and treachery fought off identity thieves better than did youth and skill.


Other consumer concerns: Coming in second to identity theft in the
2012 tally were complaints about debt collection practices, cited by 10 percent of consumers.

Also making 2012's top 10 list are complaints about:

  • Banks and
    lenders (6 percent)
  • Shop-at-home and catalog sales (6 percent)
  • Prizes,
    sweepstakes and lotteries (5 percent)
  • Impostor scams (4 percent)
  • Internet services (4 percent)
  • Auto-related complaints (4 percent)
  • Telephone and mobile services (4 percent)
  • Credit cards (3 percent)

Have you been a victim of ID theftn (I was)? How about harassed by an aggressive bill collector? Do your personal experiences match up with the 2012 FTC consumer complaint list?

You also might find these items of interest:

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The More Tax Posts tab at the top of this page will take you to, well, more tax posts. You also can search below for a tax topic. 

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TAX-SAVVY WAYS 
TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

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