Are you Ready for IRS Scams This Tax Season?
As the beautiful season of Spring arrives, with it comes a flurry of activity as tax-payers prepare to submit their filings by April 18th. Alas, amidst this rush and stress also emerges an uptick in IRS and phishing scams, seeking to deceive vulnerable individuals into giving away confidential information.
With tax season upon us, scammers are more rampant than ever before. They're looking to take benefit of unsuspecting taxpayers and swoop in for the steal; that's why it's essential to be informed about potential IRS Tax scams and how you can protect yourself from them. Here’s what you should know so you can avoid being a victim.
Stay Aware of IRS and Tax Scams: How to Spot the Warning Signs
Scammers have a variety of deceptive tactics to convince you they are from the IRS including email, phone calls/voicemails, texts, and even social media. To make matters worse, these scammers often employ psychological manipulation to get what they want. Be sure to remain vigilant against such nefarious techniques.
Scammers use a variety of tactics to deceive you, such as making you think you're in the wrong, redirecting your attention, or inducing panic. When we are uncertain and lack confidence, it's more likely that we make mistakes. However, if we know what fraud looks like beforehand, then this can help us recognize and avoid scams along our journey.
What the scammer wants from you
Scammers typically search for an easy target, and they often try to acquire your personal information, access your accounts, make you pay for worthless services, or even worse - use you as a go-between when filing taxes. Stay vigilant against these predators!
Watch for these commonly used tactics in scams
Saying you owe money
Getting you to download something
Wanting you to pay in prepaid cards, gift cards, or wire transfers
Promising something too good to be true
Contacting you in ways that the IRS normally doesn’t
Demanding immediate action
Sending you to their unsecured site
Providing links and attachments that contain malware
Sending you to a familiar website that is actually fake
Saying you’ve broken the law in some way
Requesting you call back or you’ll be arrested
Needing your SSN or other private information
Alleging they’re a trusted source of information
Trying to rush you or make you flustered
Indicating you have an error in your account
Forms of IRS Scams
Phone Scams:
It's quite difficult to ignore calls these days, particularly when you are expecting an essential call. Nonetheless, be wary as such calls can frequently originate from vicious scammers who have the capability of masking their Caller ID and making it look like someone else is calling, such as the IRS. Because there could truly be a person on the other end of your phone line, it may prove more arduous to stay away from traps they attempt to lay out before you.
Tax Advocate Scam:
As tax season rolls around, it can be overwhelming to sort through the barrage of advertisements and information. You must remain alert for scammers who may claim they can help you get the highest return on your taxes. Don't fall victim by making sure that any service you use is trustworthy to protect yourself.
Social Media Scams:
Hackers often peruse social media profiles to access your data and use it for malicious means. They often attempt to imitate one of your contacts, family members, or even friends to delude you into giving away the items they are after. Be sure not to be taken advantage of!
Email Scams:
Scammers are experts at manipulating people through email. They often craft eye-catching subject lines to get you to open their emails, and from there they leverage various strategies to either damage your device or steal personal information. To guarantee protection against such attempts, it is critical that you stay informed about the latest scam tactics and take all necessary precautions when dealing with suspicious emails.
Tax Transcript Scam
Recently, people have been getting emails they didn't request concerning their "tax transcripts." Don't be fooled; your tax documents and records are safe with the IRS. There's no need to open any email accounts either since you can access all of this information online directly through them. Here is a list of other scams the IRS warns about.
How to avoid getting scammed
Be careful with your information
Protect yourself and your data by never posting private information on the internet. On social media sites like Facebook, Instagram, or Twitter, malicious users can easily misuse any personal info that you make public. To ensure maximum security of your content and identity online, adjust your account settings to be as restricted as possible. This way, only those with permission will have access to it!
Check if the information is authentic
The IRS furnishes its documents openly on the web to guarantee transparency. If you notice any discrepancies between what they have provided and your document, it's likely a sham. To verify if this is legitimate or not, simply head over to either Understanding Your Notice or Letter and Forms and Instructions. Both are available through the IRS website! By doing so, you can ensure that none of the details have been twisted in any way.
Never feel obligated to provide any information
Phone conversations can be nerve-wracking, even more so when it comes to potential scams. However, you always have the right to terminate a call if something doesn't feel right. If this ever happens, contact the IRS and provide them with details of the conversation such as their phone number used for communication, any other numbers they asked you to reach out on, their name (if provided), the date and location of the exchange along with any employee identification that was given during the talk.
The IRS will not contact you via email, phone, voicemail, text, or social media
To protect yourself from IRS scams, remember this essential rule: the only way to authentically receive contact from the Internal Revenue Service is through communication via the United States Postal Service. If you happen to find any other form of message besides an official document in your mailbox, it's likely a criminal up to no good.
Do not open anything in the email, text, tweet, etc.
Scammers can approach you in many ways, and if something seems off to you, do not open it. If for some reason you have already done so, abstain from clicking on any of the attachments or following instructions that may be included. There is a strong chance they could contain malicious software that will damage your computer.
Update passwords and use Multifactor Authentication
Repeatedly changing your password and login info can significantly reduce the chances of a third party accessing your data and stealing your identity. To further protect yourself, it is advisable to use multifactor authentication. For example, 2-factor verification requires multiple forms of identification.
Check if the service you’re using is reputable
To ensure that you don't become a victim of fraudulent tax services, it is imperative to do your research before choosing a business. Although browsing through countless companies can be time-consuming and tedious, the extra effort will pay off in the long run. The Better Business Bureau serves as an invaluable source for authenticating businesses. They make sure they are legitimate and trustworthy, so it can be highly beneficial to take advantage of this resource.
What to do if you've already been attacked
Immediately report the Issue to the IRS:
Time is of the essence when alerting the IRS if you have been subjected to fraud. Prompt action can give more chances of success, though promises cannot be made. You can email them at phishing@irs.gov for your issue to be taken into consideration. If any funds were lost due to an IRS-related scam, then it must be reported directly to the Treasury Secretary General of Taxes as soon as possible along with contacting the FTC so those responsible are held accountable.
Check and Close your accounts:
If you have reason to believe that someone has stolen your identity as part of a tax scam, take immediate action and inspect your credit account for any irregularities. Additionally, make sure to contact your bank right away. They will be able to freeze existing accounts to stop further misuse or prevent new accounts from being opened without authorization.
In the case of unemployment fraud:
Unemployment fraud is another common way people are scammed throughout the year. Unfortunately, it usually isn't detected until tax time when people receive incorrect 1099-G forms. To ensure that you're not exposed to any financial risks or identity theft issues associated with fraudulent activity, be sure to report inaccuracies in your form immediately by contacting the proper state agency.
The effects of a phishing email scam from the IRS are far-reaching and can be devastating for businesses and their employees. With work shifting online more frequently, cybercriminals find even more opportunities to exploit vulnerabilities created by remote working conditions which makes them increasingly attractive targets. If you have any questions about phishing scams around this time of year, please contact us.
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