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Extra Precautions Help Prevent Identity Theft During Tax Season

Fellowes Offers Tips for Secure Filing Electronically and Through the Mail

Itasca, Ill. (February 11, 2008) – For most Americans, tax season means frustrating hours spent with piles of paper, but for identity thieves, this time of year provides an open-door opportunity to steal personal information.

Identity theft has gained momentum in recent years, claiming approximately 23,000 victims each day1. While it’s important to protect confidential information year-round, people are especially vulnerable to the crime during tax season.

“Similar to the holiday shopping season, tax time provides a variety of opportunities for identity thieves,” said Jay Foley executive director, Identity Theft Resource Center. “It is essential that consumers are cautious when handling their tax-related information.”

In recent years, more people have turned to electronic filing for added convenience. In fact, according to the IRS, the 2007 tax-filing season set a record for the number of electronic filers with more than 75 million tax forms filed online. While e-filing may offer a simplified approach to an already dreaded filing process, it may also give consumers a false sense of security when it comes to protecting against the crime.

“The convenience of e-filing doesn’t decrease consumer’s vulnerability to identity theft during tax season,” said Nancy Heaton, senior global marketing manager at Fellowes, Inc. “In reality, the same amount of paperwork is required for tax back-up. That’s why it’s essential for consumers to shred any papers containing confidential information that are used to file their taxes.”

It’s also critical to properly store and destroy sensitive back-up documents used during tax season, and shredding is one of the most effective ways to get rid of confidential information you no longer need. When destroying records, it’s best to use a shredder that features cross-cut capabilities, such as the Fellowes PS-77Cs, which ensures private information is reduced to small, unidentifiable pieces.

In addition to shredding, consumers should take the following steps to ensure they are protecting themselves from identity theft, whether they file their taxes through the mail or online.

    Filing Taxes Through the Mail
  • Keep tax paperwork and other documents in a safe and accessible place, such as a fireproof box in your home.
  • Regularly check the mailbox for W-2 forms and other documents containing sensitive information that arrive by mail. If you don’t receive these documents by Feb. 15, contact the IRS for assistance at (800) 829-1040 as missing forms may be an indication that an identity thief went through your mail.
  • Send completed tax returns from a locked mailbox or the post office. If mailing from home, do not put the mailbox flag up. This only alerts identity thieves that there may be an outgoing check in the mail.
  • Make sure tax forms, backup documents and enclosed checks are not visible from the outside. Try wrapping your forms in an extra sheet of paper to disguise the contents of the envelope.
    Filing Taxes Online
  • Choose a tax filing service you are familiar with. The IRS doesn’t offer software or direct filing, but it provides a list of approved companies at www.irs.gov/efile.
  • Make sure personal computers are protected with updated firewall and secure software systems which contain antivirus and anti-spyware programs.
  • If you are storing important tax-related documents on your computer, change your passwords frequently between December and April.
  • Ensure that every Web site you are using during tax filing is encrypted to protect personal information when transmitted.
  • Once you have submitted your tax forms, shred any information you no longer need.
For additional identity theft prevention tips and information on how long to keep financial records, visit www.fellowes.com or check with your tax professional.

About Fellowes
Headquartered in Itasca, Ill., Fellowes, Inc. offers an impressive range of products to equip the workspace, including paper shredders, binders and laminators, desktop accessories and record storage solutions. Fellowes, Inc. owns and operates subsidiaries in Canada, United Kingdom, Benelux, France, Germany, Italy, Poland, Spain, Russia, Singapore, Japan, Korea, China and Australia. The company employs more than 2,700 people throughout the world and expects global sales in excess of $700 million this year.

Sources:
1. Javelin Strategy and Research, 2007 Identity Fraud Survey Report; based on 8.4 million victims in 2006.
 
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