Whether you invest in publicly traded vehicles like stocks or alternative investment options like real estate and precious metals, wise self-directed investors stay vigilant against identity theft and other fraudulent activities. Due diligence is certainly warranted before engaging with an investment strategy, but it can also help you navigate the potentially dangerous waters of our web-based society.

The IRS provides tax tips that can help individuals keep their eyes peeled for criminal attempts against them. They recently highlighted two common scams and the new measures identity thieves have been implementing in trying to fulfill them.

Theft of Social Security Numbers

A new tactic has emerged in all-too-common automated voicemails in which a nefarious person or entity impersonates the IRS to phish for social security numbers. The messages may now claim that one’s social security number can be suspended or cancelled if he or she doesn’t comply, thus adding a new element of fear that may entice victims to respond.

“Bureau of Tax Enforcement”

Taxpayers may receive letters from the “Bureau of Tax Enforcement”—a non-existent agency—threatening IRS liens or levies as a result of overdue taxes to the Bureau itself. These letters may reference the IRS as a means of feigning legitimacy.

New Direction Trust Company takes the security of your identities and of your self-directed IRAs very seriously. We are dedicated to a broad range of best practices to this effect:

• We will never share your account information with anyone unless they’ve been designated as an interested party or they’ve been granted power of attorney. These actions can only be taken by you, the account holder.
• In accordance with a recent update to our signature policy, New Direction Trust Company now requires hand-written signatures on our Transfer/Rollover Form (to bring money from another custodian into your NDTCO account) and on third-party transfer paperwork (to bring money from your NDTCO account into another account elsewhere).
• Users must answer security questions to access myDirection®. Password resets or other account changes made via myDirection® are verified through two-factor authentication.
• Account-specific inquiries made via e-mail will only be answered if received from an e-mail address on file for that particular account.
• Account-specific verbal passwords are used to verify anyone who contacts our office via phone call.

Visit the IRS website for more information about avoiding scams. Please don’t hesitate to contact New Direction Trust Company at 877-742-1270 or info@ndtco.com if you ever have questions or concerns about your account or self-directed investing.