The new year offers a fresh start and new opportunities. But if you think ahead just a smidge, it can also produce anxiety. Why? Because tax season is right around the corner.
And so are criminals who want to take advantage of taxpayers and preparers.
“Stay alert and take steps to safeguard your personal information as your filing your taxes,” said Kimberly Reece of the Regions Fraud Prevention Customer Advocacy Team. “It’s also a good idea to file early, reducing the possibility of a fraudster using your information since the IRS will only accept one tax return per social security number.”
The IRS has strengthened its defenses against these scams, but fraudsters are constantly seeking new ways to create havoc.
Common Fraud Schemes
- Phishing – Scammers will send you an email allegedly from the IRS or even your state or local tax assessor offering either a phony tax refund or warning of dire penalties. Remember, official IRS communications usually come through the mailbox.
- Smishing – Scammers will send text messages warning “your account is on hold” or “unusual activity report,” urging you to respond immediately. The first give away to potential fraud is the means of communication. The second is the urgency.
- Red Flags to ongoing scams – They could include a W-2 from an unknown employer, a tax transcript that you never ordered or a letter or email from a preparer notifying you of a new online account. The latter is easy to confirm – just call your preparer.
- Beware of fishy offers – Be wary of tax prep providers who offer guaranteed refunds or “too good to be true” offers like free tax preparation. These may be fraudsters attempting to compromise your personal information.
As always, be vigilant.
6 Tips to Stay Safe from Tax Fraud Scams
During tax season, keep these easy-to-follow tips in mind to keep safe from tax fraud scams
- Don’t trust unsolicited messages. If you get an urgent text, email or phone call requiring immediate attention, you’ve got a major red flag. According to the IRS website, “The IRS initiates most contacts through regular mail delivered by the United States Postal Service.”
- Those unsolicited messages can include respectable tax preparer services promising big refunds. Remember, these messages are likely spoofed and not from legitimate sources.
- Don’t click on links in the message. If you are suspicious, forward the message to [email protected]. You’ll help protect others.
- If you are the recipient of a refund, a safer and more expeditious route is to sign up for direct deposit rather than to receive a paper check that could be stolen out of the mail and fraudulently negotiated.
- Be wary of messages from friends or family seeking help. If you think it’s legit, verify independently with a phone call.
- Consider creating your own IRS personal account. It only takes a few minutes and can keep scammers from using your information.
Remember, unsolicited contact is usually the biggest red flag.
Additional Resources from Regions.com
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The information presented is general in nature and should not be considered, legal, accounting or tax advice. Regions reminds its customers that they should be vigilant about fraud and security and that they are responsible for taking action to protect their computer systems. Fraud prevention requires a continuous review of your policies and practices, as the threat evolves daily. There is no guarantee that all fraudulent transactions will be prevented or that related financial losses will not occur. Visit regions.com/STOPFRAUD or speak with your Banker for further information on how you can help prevent fraud.