Risk of ID theft, security breach may rise during tax season

With tax season approaching, taxpayers are being urged to get their financial reporting done early. However, with growing incidents of identity theft and security breaches, organizations are also being urged to adopt effective ID verification processes. According to a report released this week by ID theft and credit management firm PrivacyGuard,  88 percent are worried that the organizations with which that they share personal data could suffer a data breach. Retailers were cited as the least trustworthy, with 46 percent of respondents expressing concerns, followed by credit card firms and government agencies, respectively. "Americans have become increasingly concerned about the risk of identity theft over the past few years," said Christine El Eris, director of product at PrivacyGuard. "However, taxpayers need to be aware of the unique risks they face during tax season." Nearly two thirds of respondents - 60 percent - pointed to postal mail as the most trustworthy delivery option for tax returns, reflecting general public skepticism of online financial disclosure and tax filing. Taxpayers should be aware of suspicious emails and phone regarding their tax returns this season, and be diligent in choosing their preparers.