- Allstate Id Safety survey finds practically two-thirds (64%) of People 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 shielded from fraud.
NORTHBROOK, Unwell., March 20, 2025 – As tax season begins, new findings from Allstate Id Safety reveal rising issues about id 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 People 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 id theft is actual, with 40% of Allstate Id Safety’s id restoration instances reported throughout tax season alone.[2]
“Tax season is prime time for id theft, with refunds on the road which might be usually value hundreds,” stated Caroline Slane, senior vp of enterprise operations at Allstate Id Safety. “We assist individuals take management earlier than fraud occurs and get their life again on observe when it does.”
An neglected profit that protects your tax refund
Many individuals flip to id monitoring companies, however attainable neglected advantages in a plan can supply one other sturdy security internet. Actually, two-thirds (66%) of People 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, so that they don’t wait years to get their a refund.
- Reimburse members’ id theft-related prices as much as $1 million, together with authorized charges and misplaced wages.
New this 12 months: Allstate now affords an id 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? People say they’d moderately…
With victims ready practically two years to get better stolen tax refunds, People say they’d moderately cope with 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 People (20%) say they’re extra apprehensive about tax-related id theft this 12 months, and 44% say their concern is simply as excessive as earlier years. People’ id 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 People (33%) admit they’ve finished nothing to guard themselves from tax-related id theft.
Tips on how to stop falling sufferer to tax fraud
Fraud isn’t only a tax-time concern—authorities and tax fraud rank amongst Allstate Id Safety’s prime three id theft instances for years.[3] Different widespread scams, like fraudulent bank card and mortgage functions, additionally price People hundreds of thousands yearly.
“One of the best 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 fingers,” Slane stated.
For those who suspect that you’re a sufferer of tax-related id theft, it’s necessary to take motion instantly. When you study that somebody has filed taxes utilizing your id, 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 id 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 individuals from life’s uncertainties with a circle of safety together with vehicles, properties, digital units, advantages and id theft. Merchandise can be found by means of 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 Fingers with Allstate®.
Methodology
[1] Survey carried out 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 had been carried out 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 instances reported Jan.-April, 2024.
[3] Based mostly on variety of Allstate Id Safety restoration instances Jan., 2022-Dec., 2024.
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