Information Security Tips

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. It doesn’t matter whether you owe money to the IRS or are expecting a refund, as the scammers will target you regardless of your situation.  

Let’s explore some common tax scams, warning signs that you may be a victim and steps you can take to protect yourself, your identity and your finances.

Common Tax Scams

Cyber criminals use the same tried-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 such as your date of birth, social security number, driver’s 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 owe 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.”
• Gift Card Scam: “You owe us back taxes and may be charged with a federal crime. You must pay a penalty to avoid being prosecuted. Purchase these gift cards and send them to us and we will wipe your record clean.”
• Fake Charity Scam: Scammers pose as a legitimate charity, often with a similar name as a real charity, to trick you into donating money to their own cause–filling their pockets.
• 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

Hopefully you have avoided the common tax scams, but the cyber criminals may have other methods of obtaining your information, such as data breaches of companies you do business with. Watch out for these warning signs that you may already be a victim.