With tax season upon us, scammers are in full force looking to take advantage.
Tax scams typically involve criminals impersonating the IRS or other tax authorities and using various tactics to trick victims into providing sensitive information, such as social security numbers, financial information, or even cash.
Here are a few common tax scams and how they work:
- Phishing scams: Criminals may send emails or make phone calls that appear to be from the IRS or other tax agencies. They may claim that there is a problem with your tax return and ask you to provide personal information, click on a link or download an attachment that contains malware or a virus.
- Fraudulent returns: Scammers may use stolen personal information to file fraudulent tax returns in your name and claim a refund. They may even use your bank account information to have the refund deposited directly into their own account.
- Impersonation scams: Scammers may contact you and impersonate an IRS agent, claiming that you owe back taxes and threatening legal action if you don’t pay immediately. They may ask you to wire money, use a prepaid debit card, or even pay with cryptocurrency.
Here are some tips to help you prevent tax scams:
- Be suspicious of unsolicited emails or phone calls from the IRS or other tax agencies. The IRS typically contacts taxpayers by mail before making phone calls or sending emails.
- Don’t give out personal information, such as your social security number or bank account information, to anyone who contacts you by email or phone. The IRS will never ask for this information via email or phone.
- File your tax returns early to minimize the risk of someone filing a fraudulent return in your name.
- Check your credit report regularly for suspicious activity that may indicate identity theft.
- Use anti-malware software on your computer and keep it up-to-date to help prevent malware or viruses from being downloaded onto your device.
- Be wary of any promises of an extremely large refund or threats of legal action. If you’re unsure about the legitimacy of a tax claim, contact the IRS directly.
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