It’s that time again—tax season. Alongside the hopeful anticipation of a refund check comes a less welcome possibility: scammers. Cybercriminals are constantly dreaming up new ways to separate you from your hard-earned cash and sensitive information. But fear not! Staying informed is your best defense. Here are some of the scams to keep an eye out for this tax season.
IRS Impersonation Scams: When Uncle Sam Isn’t Really Calling
Have you ever picked up the phone and heard, “This is the IRS, and you owe us money immediately!”? If so, you’ve encountered a classic IRS impersonation scam. Fraudsters posing as IRS officials use fear tactics to pressure taxpayers into immediate payment or sharing sensitive personal information. Remember—The real IRS will never call to threaten you with immediate arrest or demand payment over the phone, especially not via gift cards or cryptocurrency. When in doubt, hang up and contact the IRS directly through official channels.
Tax Refund Fraud: Identity Theft with a Twist
Imagine filing your taxes only to receive a notice from the IRS stating you’ve already filed and received your refund. Welcome to the unsettling world of tax refund fraud. Scammers steal identities—often via data breaches—and file fraudulent tax returns to pocket refunds meant for you. To guard against this, file your taxes as early as possible and consider obtaining an Identity Protection PIN (IP PIN) from the IRS. This unique code adds an extra layer of protection, ensuring only you can file your return.
Phishing and Smishing: Don’t Take the Bait!
Cybercriminals love tax season because they know everyone is anxious about getting things right. This makes phishing emails and “smishing” (SMS phishing) texts especially effective. These scams look like authentic messages from tax preparation companies or even the IRS itself, prompting you to click on malicious links or download dangerous attachments. Always verify the source as an initial step towards safeguarding yourself. Hover your cursor over email links before clicking, and never provide sensitive information via unsolicited messages.
Risks of Digital Tax Filing: Stay Safe Online
Digital tax preparation is incredibly convenient, but it’s not without risks. Cybercriminals target taxpayers using unsecured Wi-Fi networks at coffee shops or airports, capturing sensitive personal information like social security numbers or financial details. Always file taxes or handle sensitive financial information over secure networks—ideally your home connection. If traveling, consider using a reputable VPN service to safeguard your data.
Stay Alert and File Safely!
Tax season doesn’t have to be scary if you’re prepared. Stay informed about the latest scams, diligently secure your personal data, and double-check suspicious communications. If something feels off, trust your instincts and contact the IRS or trusted financial professionals directly.
LibertyID Identity Theft Solutions for Individuals, Couples, and Families* provides its subscribers with 360° fully managed identity fraud concierge restoration services. We are experts in resolving all common forms of identity fraud. Our subscribers can also enroll in our Proactive Detection, which monitors and sends alerts when their SSN, Address, Dark Web, criminal record, and credit reports change.
*LibertyID defines an extended family as you, your spouse/partner, your parents and parents-in-law, and your children under the age of 25.