Beware of Tax Scams: How to Avoid Being Tricked This Tax Season
Tax season is in full swing, and while you’re preparing to file your taxes, fraudsters are busy trying to trick you into handing over your personal information or money. Tax scams are a growing concern every year, with scammers using tactics like phishing, fake IRS calls, and fake refunds offers to steal from you. In this blog, we’ll break down some of the most common tax-related scams and how to protect yourself during this tax season.
Common Tax Scams to Look out for:
IRS impersonation scam: one of the most common scams, this involves scammers pretending to be from the IRS and threatening arrest or legal action if you don’t pay immediately. They demand payment usually over the phone, through gift cards or wire transfers.
Fake Tax Preparer Scams: Some scammers pose as tax preparers, offering their “services” to help file your taxes or get a larger refund. They may ask you for an upfront fee and then disappear without doing any work.
Phishing Scams: Fraudulent emails or texts that look like they’re from the IRS. The messages often contain a link that, when clicked, leads to a fake website designed to steal your personal information.
How to Spot a Tax Scam:
No IRS contact by email or text. The IRS will never initiate contact with you through an email or text message.
Threats or urgent demands. Scammers will often create a sense of panic by threatening legal action or arrest if you don’t act immediately.
Unsolicited requests for payments. The IRS will never demand immediate payment over the phone or ask you to pay with gift cards, wire transfers or cryptocurrency.
How to Protect Yourself:
Verify any unsolicited communication. If you receive an unexpected phone call or email claiming to be from the IRS, hangup and contact the IRS directly using official numbers or their website to verify.
Never pay with gift cards, wires, or cryptocurrency. The IRS or a legit tax agency will never ask for payment in these forms.
Enable two-factor authentication. For any online accounts related to your taxes, use two-factor authentication to add an extra layer of security.
Be cautious with your personal information. Only share with trusted sources.
