Personal Identifiable Information (PII)

A conversation about identity theft must begin with a definition of the term Personal Identifiable Information or PII.

Basically, PII is information that can be used alone or with other personal data to identify a person. There are different types of PII – sensitive and non-sensitive. Sensitive PII, includes but is not limited to social Security numbers, driver’s license numbers, passport numbers, financial or medical records, or biometrics. This type of PII contain direct identifiers that identify you uniquely and should be safeguarded to prevent it from falling in the hands of identity thieves.

Non-sensitive information such as your zip code, date of birth, addresses, employment-related information can be found in public records or accessed from social media accounts, directories, and other public sources. This type of PII contain indirect identifiers that when combined with other relevant data identify you successfully. Think of indirect identifiers as puzzle pieces. Each indirect PII or puzzle piece can’t determine a person’s identity alone. Your name can’t identify you uniquely because most first and last name combinations are shared by many people. Date of birth alone can’t identity you uniquely. However, date of birth combined with other identifiers can be used to recognize and distinguish you from another person.

Your PII is worth safeguarding. PII is valuable to identity thieves who use it for their financial gain leaving your credit and reputation damaged or destroyed, as well as a complicated challenge to restore your identity. PII connects you to aspects of every day living and going about this life: driver license and DMV and driving are connected, credit scores which are built on PII are needed to open a utility, cell phone accounts, or to take out a loan or mortgage, and the topic for today: PII used to file your tax return.

Many of us ignore the sensitivity of unique or direct identifiers and fail to safeguard this information. Is your social security card in your wallet? If so, the information on your social security card and your driver license give identity thieves the information needed to file a fraudulent tax return in your name. Have you applied the privacy settings on your social media accounts to lock down PII information? Are you careful about the information shared on social media? Answers to security questions such as your favorite pet may be hiding in plain sight in your social media account. Identity thieves can piece together sensitive and non-sensitive data to commit identity theft. Another area worth noting is The Internet of Things or IoT, which includes hardware devices that collect and exchange data over the internet. These devices include smart TVs, smart bulbs, and smart baby monitors and the like.

Tax Related Identity Theft

Identity theft occurs when someone uses another person’s PII without permission to commit fraud or a crime.

Tax-related identity theft occurs when someone uses your stolen Social Security number (SSN) to file a fraudulent tax return claiming a refund or credit. Oftentimes you become aware of Tax-related identity theft when Your tax return is rejected for e-filing because the social security number on your return was already used on a tax return filed that year. The assumes that you did not transpose or have any typos in your social security on your return.

Other warning signs of tax related identity theft occur when the IRS notifies you by letter that they’ve received a suspicious tax return with your name and social security number. Or they notify you about a balance due from a tax return that you did not file, refund is offset for a tax return that you did not file, or you receive a collection notice for a tax return that you did not file.

Take Action:

• If you suspect you are a victim of identity theft, continue to pay your taxes and file your tax return, even if you must file a paper return. Complete IRS Form 14039, Identity Theft Affidavit, attach it to the back of your completed paper tax return. Visit the IRS website and page on tax related identity theft for resources and guidance: https://www.irs.gov/newsroom/taxpayer-guide-to-identity-theft

• Check out these resources from the Federal Trade Commission

  • Report identity theft and get a recovery plan: https://www.identitytheft.gov/

  • Tips to stay safe and secure online: http://www.onguardonline.gov/

• Simius Technologies provides cyber security for people like you. For more information:

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• As with any tax issue, contact your tax professional to help you navigate your own unique situation.

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