Just two days after I wrote a piece on the importance of safeguarding your personal information during tax season to prevent identity theft, the Washington Post reported that the IRS may have blown it for you anyway.
Apparently, the government agency did not protect our personal data as well as we had hoped, and the identities of thousands of taxpayers may now be at risk. But, as disheartening as this news may be, I implore everyone to stay vigilant and treat your own private information with tremendous care. Don’t let this latest data debacle discourage you; use it as a call to action instead. The many data thefts of the last year have proven time and time again that businesses and other agencies are not doing enough to protect our identities. We must demand more from them. We cannot afford to sit back and hope for the best while companies that hoard our information continue to employ lax security measures.
In this most recent example of data theft, it has been revealed that the IRS was warned of security flaws as early as 2003. It’s maddening to wonder why no action was taken. But now is the time. Write to your elected representatives and demand legislation that requires companies to update their security measures and receive more training in data protection. The current measures are apparently insufficient.
In the meantime, consumers must remain on the front lines in this battle against identity theft. Safeguard your personal data, and treat Social Security numbers, bank and credit card numbers, and ATM codes and the like as confidential information. Our publication, Preventing Identity Theft: A Guide for Consumers (PDF), provides some very good tips to help you guard against identity theft.
Finally, on a related note, the Washington Post also reported that a large group of retailers are combining their efforts to reduce the incidence of theft in their stores. Consumers might not think about it, but Joseph LaRocca, vice president of loss prevention for the National Retail Federation, estimated in the article that shoppers pay 1.5 percent of each dollar to make up for stolen products. He continued to say,
“Ultimately, consumers pay higher prices. It’s like a hidden crime tax.”
This recent collaboration of retailers is an important step for us all. By working together, many different stores will be able to share details of theft they experience with each other and with law enforcement agencies. I hope this effort will raise awareness as well as convictions—and eventually reduce that hidden “crime tax.”
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