Don’t Get Scammed This Tax Season

Tax season is upon us, and while most of us are focused on getting our returns filed accurately and on time, scammers are also gearing up for the busiest time of year. Unfortunately, tax scams are becoming increasingly sophisticated in stealing your personal and financial information. That’s why it’s more important than ever to stay vigilant and protect yourself from these fraudulent schemes. Understanding these scams and knowing how to protect yourself can help you avoid falling victim to tax fraud.

Read: How to Protect Your Business and Avoid Fraud

5 Common Tax Scams to Watch Out for

1. Phishing scams and fake websites: Scammers often send emails or text messages posing as the IRS or legitimate tax services. These messages may contain links to fake websites to steal your login credentials, Social Security number or bank details.
2. Phone scams and impersonation calls: Another common tactic is for fraudsters to impersonate IRS agents and call you, claiming you owe back taxes and demanding immediate payment via wire transfers, gift cards or cryptocurrency. They may threaten you with arrest or legal action if you don’t pay them immediately.
3. Fake tax preparers: Some scammers also post as tax professionals to inflate deductions to get a larger refund, which they then take a portion of. If they gain access to your personal information, they could file fraudulent tax returns or access your bank accounts.
4. Refund scam: Fraudsters might reach out claiming the IRS recalculated your refund and they owe you additional money. However, the only way to receive the “extra money” is by providing your bank account information.
5. Verification scam: Scammers could also claim they need you to update or verify your personal or financial information. They might ask for your driver’s license, W-2 or Social Security number.

How to Protect Yourself from Tax Scams

Avoid falling for tax scams by knowing how to identify these scams:

• Know how the IRS works: The IRS does not initiate contact via email, text or social media. They will never demand payment over the phone, and they will never ask for payment using gift cards, prepaid debit cards or cryptocurrency.
• Be skeptical: Look for misspelled words, poor grammar or urgent language in messages. Never click on links or download attachments from unsolicited emails. Don’t provide personal information unless you know the sender’s identity. Be cautious of “too good to be true” offers.
• Secure your information: Be careful about what personal information you share online. Use strong passwords and enable multi-factor authentication (MFA) for tax-related accounts.
• File early: Filing your tax return as soon as possible reduces the risk of refund theft.
• Monitor your accounts: Regularly check your credit reports and IRS account for any suspicious activity, such as new accounts or loans you didn’t apply for.
• Use trusted tax professionals: Always thoroughly research tax preparers before hiring them, and only work with verified and reputable tax preparers. Avoid tax preparers who base their fees on the size of your refund.
• Report suspicious activity: If you suspect tax fraud, report it to the IRS or call the fraud hotline at 800-366-4484.

Protect Yourself with Thriveon

Tax scams continue to evolve, but staying informed and vigilant can help protect you and your business from falling victim. By staying cautious and proactive, you can keep your personal and financial information safe during tax season and beyond.

At Thriveon, we offer robust cybersecurity services to protect your sensitive data from cyber threats. A Fractional CIO will align your business with 500 industry best practices. Schedule a meeting now for more information.