2. File Tax Returns Using Your Identity
Once a hacker acquires all the relevant information to assume your identity, they can start a new life – pretending to be you. They will even be able to get a job in your name. Now, that the hacker has assumed your identity and got a job, they can file tax returns in your name and claim a refund. Not only can they steal your tax refund (the average refund is just shy of $3,000), you’ll land in hot water when two tax returns are submitted in your name. You could get investigated for fraud by the IRS, with the tax company unsure who is the victim and who is the criminal. Not only that, the hacker’s false employment could follow you around for years and hinder you when you apply for a new job in the future. While the tax authorities work to prevent tax identity theft, it still happens regularly.