For many, tax season holds the promise of refund checks, but some people have received an unwelcome surprise when filing their tax returns this year – a stolen identity.

In the past week, two people have notified the Bowling Green Police Department that their personal information has been stolen, both having learned of the theft when they filed their taxes.

The ramifications of identity theft for the victim can be staggering: an empty bank account, ruined credit and lost access to loans and other financial aid.

“What’s happening in these cases is that people are just now finding out about it because they’re filing an income tax return where they have to use their Social Security number,” said Officer Barry Pruitt, spokesman for city police. “A lot of people don’t find out they’ve been a victim of identity theft for sometimes years.”

According to Javelin Strategy and Research, identity theft claimed 9.9 million victims in the U.S. in 2008, a 22 percent increase over 2007.

The total amount of money involved in identity thefts last year was $48 billion, although the average cost to the victim, including unrecovered losses and legal fees, decreased from $718 to $496 per incident; Javelin’s report attributes that to fraud being detected faster and lesser amounts involved in individual fraud cases than in 2007.

Pruitt said the length of time between the moment a person’s identity is stolen and the moment that person learns of the theft makes cases difficult to prosecute.

Most successful local prosecutions of identity theft occur when a scammer uses a relative’s personal information for financial gain, Pruitt said.

Warren County Commonwealth’s Attorney Chris Cohron said instances of identity theft have become more prevalent in recent years, with the most common cases occurring through either Internet scams or illegal immigrants buying someone else’s Social Security number to use for their own identity, often for employment purposes.

Cohron said that his office works with Immigration Customs Enforcement officials to trace a stolen identity from the user back to the so-called “trafficker” of the identity. The penalty for identity theft is a sentence of one to five years in prison with an enhancement of up to 10 years.

“Restitution is always a part of any settlement and effort to make the victims whole,” Cohron said. “One thing we try to do is educate (victims) as much as possible.”

IRS spokeswoman Jodie Reynolds said scams geared specifically toward tax season are common, with a number of scams taking the form of phone calls and e-mails from people who claim to be IRS representatives.

Last year, scammers phoned potential identity theft victims and asked them to confirm personal information so that they had the correct mailing address to send stimulus checks, and similar schemes have been reported this year, according to Reynolds.

“We aren’t going to call you and ask for personal information,” Reynolds said. “If you ever receive a phone call and you have any doubts in your mind at all about the legitimacy of the call, don’t give them any personal information.”

In Kentucky, Reynolds said the IRS has been made aware of scammers claiming to represent relief organizations, asking for donations to help victims of last month’s winter storm.

Reynolds also warned people to avoid scams involving the current economic stimulus plan; many of those purport to offer advance payment checks.

Suspicious tax activity and fraud are investigated by the office of the Treasury Inspector General for Tax Information and the public can call (800) 829-1040 to report possible scams.

Internet and telephone scams receive much of the attention, but many instances of identity theft occur through other methods – scammers digging through garbage for mail and victims losing wallets remain common avenues toward theft, Pruitt said.

The road to recovering lost money and restoring bad credit can be difficult, as Denise Richardson learned. A victim of identity theft, Richardson spent 15 years restoring her credit.

The former Massachusetts real estate paralegal is now a consumer advocate, having written the book “Give Me Back My Credit.”

“It’s just a known fact that as the economy goes south, crime goes north,” Richardson said. “There are more innovative ways to scam us, so people have to be more suspicious and less open to people who are soliciting them.”

Richardson said that people must be more knowledgeable about their credit history in order to deter identity theft.

Annualcreditreport.com enables people to access their credit report for free once a year, and Richardson said that people who are concerned can put a freeze on their credit to prevent new accounts from being opened in their name.

If a credit freeze is infeasible due to an imminent refinancing or some other action that requires opening a new account, people can put a fraud alert on their credit file for 90 days, which requires creditors to verify that the person using your credit is actually you.

“I don’t think there’s been a more important time to know what’s in your credit report and (learn if) your score is accurate,” Richardson said.

Another good idea: a paper shredder to destroy mail and other documents with your personal information on it before throwing it away, Pruitt said.

During tax season, Reynolds said it is important to file with a reputable tax preparer to avoid identity theft.

“Make sure you’ve got someone who’s legitimate, a tax professional who signs the return and provides a copy for your records,” Reynolds said. “Don’t sign a blank tax form, and be sure to know the credentials of your tax preparer and know whether they’re an attorney or an accountant.”