If you are a current or former customer of Anthem, today has undoubtedly been stressful. If you haven’t already, consider freezing your credit to prevent rampant identity theft. But this whole nightmare may have just gotten a lot worse.
Software-maker Intuit, maker of tax filing software TurboTax, has just announced that it is halting e-filing of state tax returns due to, you guessed it, rampant identity theft and fraud. You see, criminals are taking social security numbers, dates of birth, names, and addresses, and filing false state returns. Upon filing a false return on your behalf, criminals insert their bank information, and make-off with your tax refund.
So, if 80,000,000 people just had all of their social security numbers, dates of birth, names, and addresses stolen, then your credit isn’t the only thing at risk. Freezing your credit will stop credit fraud, but if the government continues to accept e-filing from companies like TurboTax, then state tax revenue departments will collapse in the midst of fraud reports.
Minnesota has stopped accepting e-filed tax returns altogether. Look for many other states to do the same. You can’t do anything about this particular issue, whether you happen to e-file or not. Because if a crook e-files before you get around to e-filing, then your tax return will be rejected.
I’ll be discussing this very topic on The Willis Report on Fox Business, tonight at 5pm est.
Peter Dunn a.k.a. Pete the Planner® is an award-winning financial mind and a former comedian. He’s a USA TODAY columnist, author of ten books, and is the host of the popular radio show and podcast, The Pete the Planner Show. Pete is considered one of the foremost experts on financial wellness in the world, but he’s just as likely to talk your ear off about bass fishing.
9 thoughts on “Breaking: How the Anthem data breach may have just gotten worse”
What does this mean if I have already e-filed my own returns? Is there a possibility they will not be processed?
If you already filed and it was accepted, you’re fine, for this year.
I filed my daughters return on TurboTax online and she just got a letter from the State and had to go online and answer security questions before they would release the return. I had never seen a letter like this before and was wondering what the deal was. I guess this explains it.
Actually, before they would release the refund.
Thanks for the info. Heading over to freeze my credit now.
If I tried filing yesterday and was rejected, could this be why and what should I do to find out if it was because of this or another reason.
Yet another reason to make sure you OWE