- Allstate Id Safety survey finds practically two-thirds (64%) of Individuals are involved scammers will steal their private data to file a tax return and pocket the refund.
- Allstate Id Safety ensures members’ tax refunds are protected against fraud.
NORTHBROOK, Sick., March 20, 2025 – As tax season begins, new findings from Allstate Id Safety reveal rising issues about identification theft – but many filers could also be overlooking protections that may safeguard their private data and refunds.
A brand new survey from Allstate Id Safety finds that 64% of Individuals fear scammers will steal their private data, like their Social Safety quantity, to file a tax return and pocket their refund.[1]
The rise in tax-related identification theft is actual, with 40% of Allstate Id Safety’s identification restoration circumstances reported throughout tax season alone.[2]
“Tax season is prime time for identification theft, with refunds on the road which can be typically value 1000’s,” mentioned Caroline Slane, senior vp of enterprise operations at Allstate Id Safety. “We assist folks take management earlier than fraud occurs and get their life again on monitor when it does.”
An ignored profit that protects your tax refund
Many individuals flip to identification monitoring companies, however attainable ignored advantages in a plan can provide one other sturdy security web. Actually, two-thirds (66%) of Individuals say they’d pay for a service like Allstate Id Safety that ensures their tax refund is protected against fraud with options that:
- Advance impacted members’ refunds, in order that they don’t wait years to get their a reimbursement.
- Reimburse members’ identification theft-related prices up to $1 million, together with authorized charges and misplaced wages.
New this yr: Allstate now presents an identity restoration plan with a devoted specialist to assist members get better stolen identities, restore credit score and safe accounts. Plans begin at simply $3/month.
How unhealthy is it? Individuals say they’d quite…
With victims ready nearly two years to recover stolen tax refunds, Individuals say they’d quite take care of main monetary setbacks than fall sufferer to fraud:
- Lose their pockets with all of their bank cards (59%).
- Have their cellphone hacked (58%).
- See their credit score rating drop 100 factors in a single day (58%).
- Lose their job unexpectedly (54%).
- Have their checking account drained (52%).
A rising concern, however few are taking motion
One in 5 Individuals (20%) say they’re extra anxious about tax-related identification theft this yr, and 44% say their concern is simply as excessive as earlier years. Individuals’ identification theft fears are primarily pushed by:
- Information about rising tax fraud (43%).
- IRS delays and staffing shortages (42%).
- Rise in AI-powered fraud (42%).
Regardless of these issues, one in three Individuals (33%) admit they’ve accomplished nothing to guard themselves from tax-related identification theft.
Tips on how to forestall falling sufferer to tax fraud
Fraud isn’t only a tax-time situation—authorities and tax fraud rank amongst Allstate Id Safety’s prime three identification theft circumstances for years.[3] Different widespread scams, like fraudulent bank card and mortgage functions, additionally value Individuals thousands and thousands yearly.
“One of the simplest ways to remain protected is to file early, use an IRS Id Safety PIN and keep alert. Taking proactive steps now can safeguard your private data and guarantee your tax refund stays in the appropriate arms,” Slane mentioned.
In case you suspect that you’re a sufferer of tax-related identification theft, it’s necessary to take motion instantly. When you study that somebody has filed taxes utilizing your identification, right here’s what to do subsequent:
- Bodily mail your paper return to the IRS.
- Full and ship an Id Theft Affidavit letting the IRS know you’re a tax identification theft sufferer, and that your paper return is the legitimate one.
For extra recommendations on defending private data this tax season, go to AllstateIdentityProtection.com.
About Allstate
The Allstate Company (NYSE: ALL) protects folks from life’s uncertainties with a circle of safety together with automobiles, properties, digital gadgets, advantages and identification theft. Merchandise can be found by a broad distribution community together with Allstate brokers, unbiased brokers, main retailers, on-line, and on the office. Allstate is known for the slogan You’re in Good Palms with Allstate®.
Methodology
[1] Survey performed between Feb. 27-28, 2025 on behalf of Allstate Id Safety by Morning Seek the advice of, amongst a nationwide pattern of two,209 adults. The interviews have been performed on-line, and the information was weighted to approximate a goal pattern of adults based mostly on age, academic attainment, gender, race, and area. Outcomes from the total survey have a margin of error of +/- 2%.
[2] Allstate Id Safety restoration circumstances reported Jan.-April, 2024.
[3] Based mostly on variety of Allstate Id Safety restoration circumstances Jan., 2022-Dec., 2024.
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