Tax season is upon us, a time of year when the scammers go into overdrive. Be extra careful while online and avoid activities that could put your identity and finances at risk. Cyber criminals use the same tired-and-true methods for tax scams as they do with other targeted attacks.
- Phishing: This tactic involves using email or malicious websites to infect your device or trick you into disclosing your information. Phishing emails may appear to come from real financial institutions, e-commerce sites, charitable organizations, or even government agencies such as the IRS.
- Phone Calls: This tactic involves making phone calls or leaving voicemails of an urgent or threatening nature. In the case of tax scams, the calls may advise you of a refund you are owed or demand that you settle an outstanding payment for back taxes. Caller ID spoofing may be used, making it appear like the person calling is from the IRS.
Scammers using these tactics generally attempt to create a sense of urgency or have a good story that would tend to compel you to disclose personal information such as your date of birth, social security number, drivers license number, or even usernames and passwords to your accounts. Watch out for these common scams:
- Refund Calculation Scam: “The IRS recalculated your refund. Congratulations, we found an error in the original calculation of your tax return and own you additional money. Please verify your account information so we can make a deposit.”
- Stimulus Payment Scam: “Our records show that you have not claimed your COVID-19 stimulus payment. Please provide us with your information so we can send it to you.”
- Verification Scam: “We need to verify your W-2 and other personal information. Please take pictures of your driver’s license, documents, and forms and send them to us.”
- Fake Tax Preparers: Watch out for tax preparers that refuse to sign the returns they prepare. If they gain access to your information, they may file fraudulent tax returns redirecting your refund or attempt to access your bank accounts.
Warning Signs
- You attempt to file a tax return, either online or by mail, but are informed by the IRS or your state that they have already received one.
- You are informed by the IRS that an account has been registered in your name at IRS.gov even though you have never created one.
- You receive a transcript from the IRS that you did not request.
How to Protect Yourself
- Identity Theft Resources
- If you believe you have become a victim of Identity Theft, visit Identity Theft.gov to report it and create a recovery plan.
- Email and Internet Security Best Practices
- Never use public WI-FI to file your taxes or conduct other business such as online banking. Only connect to networks that your trust.
- Remember that IRS.gov is the only genuine website for the Internal Revenue Service. All internet and email communication between you and the IRS would be through this site.
- Never send sensitive information via email. If you receive an email from an unknown source or one that seems suspicious, do not reply.
- IRS Representatives
- The first point of contact by the IRS is typically via postal mail. The IRS will not contact you via email, text messaging, or your social network, nor does it advertise on websites.
- IRS representatives always carry two forms of official credentials, and you can confirm their identity by calling a dedicated IRS telephone number for verification.
- The IRS does not accept payments by gift cards.
- Using Tax Preparers
- Beware of tax preparers that only accept cash payments or offer to claim fake deductions to inflate your tax refund.
- Only use a preparer that can provide you with their Tax Preparer Identification.
