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The Equifax Database Breach and Your Taxes

The Equifax Database Breach and Your Taxes

Today's news was enough to send a chill down the spines of American consumers: Equifax reported that almost half of the country – 143 million individuals – may have had their personal information compromised as a result of a massive cybersecurity breach. 

Protecting Your Personal Information is Always a Top Priority 

The Equifax cyber security breach is just the most recent reminder of the importance of protecting your personal and financial information. Both tax professionals and the Internal Revenue Service have been working diligently over the last several years to bolster the privacy and security of American taxpayers, many of whom may find themselves impacted by this crime. 

Here Are the Basics 

According to information made public by Equifax, during a three-month period during the late spring and summer of 2017 roughly 143 million files were accessed without authorization. The data that was breached included Americans' names, birth dates, and Social Security Numbers. In some cases drivers' license information was accessed, as well as over 200,000 credit card numbers. 

What You Need to Do 

Though the idea that your personal data may have been accessed, that does not mean that it will directly impact you, especially if you take the appropriate action. The first step you need to take is to see whether you were one of those Americans whose information was accessed. Equifax has provided an easy way to do that. Visit www.equifaxsecurity2017.com and click on the button marked POTENTIAL IMPACT. There is an easy process that simply asks for your last name and the last six digits of your Social Security Number. The site will quickly check to see whether you may have been impacted, and if you were it will invite you to sign up for identity theft protection and credit file monitoring. If you have any questions, you can also contact the company at a special call center dedicated to this specific issue. The toll-free number to call is 1-866-447-7559. 

Protections and Information Provided by the IRS 

As upsetting as it is to think that your personal information may have been accessed by scammers or identity thieves, it has become an unfortunate act of life in our digital age. To counter this, the Internal Revenue Service provides a list of the most frequently seen tactics that cyber thieves are using, as well as some tips on how to protect your identity

One of the top tips that cyber security experts offer whether you've been a victim of this latest breach or not is to use caution and common sense whenever you're asked for personal financial data, or other information that can be used to steal your identity.  If you do find that your information has been accessed and used illegally, we've compiled a 7-step procedure that will help you get the information to the appropriate people at the IRS quickly and efficiently. 

There is a real sense of violation and invasion when you learn that your personal information may have been compromised or accessed without your permission. For more information about any concerns you may have about how this might impact your tax filing or how to contact the IRS, contact a tax professional directly. 

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Lee Reams II

Lee Reams II

CEO

I am a tax and business news junkie who has spent the last 20 years developing and executing "best in class" word-of-mouth marketing campaigns for tax and accounting professionals. With TaxBuzz and CountingWorks we have taken that same commitment to quality content directly to the consumer. Keeping you up-to-date with the latest tax law changes, business growth tips and planning strategies to help you reach your best financial outcome.

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