Tax time may alert person to identity theft

One way consumers can afford themselves some identity theft protection is by making sure they go about their taxes correctly.

According to intelligence firm ID Analytics, tax time presents a number of ways where identity thieves can compromise a person’s information. One way consumers can protect themselves is make sure their reported income matches what they actually made.

If there is a large difference, it may mean that a scammer has used a person’s Social Security number in order to get a job, with the income being reported to the Internal Revenue Service.

"In addition, be aware that the IRS may then think you have not reported all of your income on your tax return," ID Analytics said.

The firm said that tax time can also serve as a reminder for people to check their credit report. Every person is entitled to one free credit report from each of the three credit bureaus once every year.

Experts have noted that checking a credit report can show a person whether someone has opened a fraudulent account in their name. If that is the case, people should make sure they report the problem to local law enforcement agencies and their lending institutions.