Tax season resembles Christmas for cybercriminals, and failing to recognize potential threats could lead to financial loss, data breaches, or identity theft.
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Phishing Scams
Phishing is a time-honored tactic, and vigilance is crucial during tax season. Scams featuring individuals pretending to be from the IRS can appear quite legitimate; you may even notice the expected submission date for forms, for instance.
These scams often require a keen eye. In the example below, you’ll notice that the email sender has an address based in New Zealand.
Pay attention to the language used as well. If the IRS owes you money, you would receive a tax refund form, not a return (as shown in the above message). Additionally, any refund notifications will arrive via traditional mail, not email.
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Fake IRS Phone Calls
During tax season, be cautious of callers claiming to represent the IRS. These individuals often try to incite fear by stating that you owe money to the IRS and then pressuring you to pay or share your banking details.
Although the prospect of owing money to tax authorities can be intimidating, refrain from making any payments if you encounter this situation. Always verify using the IRS’s official contact information; while you might still owe money, this ensures you are fully informed.
Learn to identify the warning signs of a scam phone call, such as fake legal threats or aggressive behavior.
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Smishing Scams
Smishing scams are akin to phishing, but they occur via SMS rather than email. You may receive fraudulent texts claiming you owe taxes, often containing a hazardous link directing you to a payment platform.
Even if you don’t provide any payment information, clicking on these links can infect your device with malware. Therefore, it’s best to avoid them altogether. Thankfully, recognizing smishing texts is simpler nowadays. For example, IRS SMS messages that allow replies should be disregarded; the IRS never texts citizens.
5
Client Outreach Scams
Filing tax returns can be overwhelming, but there are helpful tools and accountants available. However, it’s wise to find these resources independently rather than relying on unsolicited outreach emails.
Not everyone sending outreach emails is a scammer, but exercise caution before engaging. Some may use client outreach scams to “offer” accounting services but fail to deliver.
4
Wire Transfer Scams
While wire transfers are a common method for sending money today, using them during tax season can lead to negative consequences. Scammers may impersonate the IRS, requesting that you wire them money.
Since the IRS does not request payments via wire transfer, you can be assured that someone is attempting to defraud you. This also applies to requests for payments using prepaid credit cards or gift cards. If you owe money, you can always reach out to the IRS’s official helplines.
If you’ve already conducted a wire transfer, contact your bank immediately to mitigate any potential damage.
3
Impersonation Scams
Impersonation scams related to the IRS are often linked to phishing and smishing, so remain vigilant either way. One deceptive method criminals may use to extract money from you involves creating fake websites that mimic the IRS.
The official IRS website is irs.gov, and you should always ensure this URL appears correctly in your browser’s address bar, watching for typos and the absence of padlock icons.
Occasionally, you may receive emails from someone claiming to be the IRS with links included. While these might not directly steal your money, they could introduce malware to your device, so take extra precautions. It’s also wise to avoid common sources of malware.
2
SSN and Tax ID “Requests”
Your Social Security Number is among the most precious forms of personally identifiable information (PII) and should be safeguarded at all costs. Scammers may seek both your SSN and tax ID number, making vigilance particularly crucial during tax season.
They might request your SSN or tax ID via email, phone, or letter. Always double-check with the IRS before handing over any information. While this data is necessary to fill out your tax return forms, it’s not required in many other circumstances.
If scammers gain access to your SSN, they could exploit it for various forms of identity theft. Thus, aside from protecting it during tax season, share this information only when absolutely necessary.
It’s common for those preparing your taxes to ask for your SSN. The issue arises when you provide this information to random individuals who have emailed you.
1
Fake Stimulus Payments
Scammers may assert that the IRS wishes to distribute a stimulus check to you before directing you to a malicious website. There, they will urge you to input your personal information, often crafting a site that closely resembles the official IRS site to deceive users into divulging their data.
The scammer might promise you that your stimulus payment will arrive within a few business days, though it will never materialize.
This scam, while malicious, is relatively easy to identify. It mainly targets individuals who did not receive their full stimulus checks during the COVID-19 pandemic. However, these payments are typically issued automatically to eligible recipients. Furthermore, those set to receive checks will get a letter in the mail.
Tax season scams come in many forms, and staying alert is crucial. To reduce the likelihood of falling victim, remain vigilant throughout the entire season and pay careful attention to any mail, messages, or communications that claim to be from the IRS—this is how many of these tax season scams operate!
