The new year brings excitement about possibilities – and a little apprehension about what’s coming. That means just one thing: tax season is right around the corner.
Why Tax Season Scams Are Rising
Scammers know the next few months can be stressful, and they’re ready to take advantage by stealing your personal information, accounts and money. They’ll use a mix of old tactics and sprinkle in some new methods.
“Fraudsters use the stress and urgency around tax season to conduct numerous fraud scams,” said Jeff Taylor, head of Commercial Fraud Forensics at Regions Bank. “Make sure you thoroughly investigate offers for fast refunds or low cost preparation. If it sounds too good to be true, it probably is.”
Let’s look at these popular tactics:
- Social media scams
- Phishing and smishing
- Protection for seniors
- Protection for business and tax professionals
- Identity Protection PIN
The Internal Revenue Service and the Security Summit — a partnership formed more than a decade ago to protect against identity theft refund fraud — recently released tips to help protect taxpayers, tax professionals and businesses.
Learn how to recognize the top tax scam threats before you file this year.
Top Tax Season Scam Threats According to the IRS
- Social media scams: Bad tax advice on social media can mislead taxpayers about credit or refund eligibility. Influencers may convince taxpayers to lie on tax forms or suggest the IRS is hiding a tax credit. Social media posts may also connect taxpayers with scammers.
- Phishing and smishing: The IRS frequently warns against phishing emails and smishing texts, common tactics criminals use to steal personal and financial information. These impersonators want taxpayers to send money. Opening links or attachments may also harm your computer.
- Protection for seniors: Scammers target people over age 65 or nearing retirement for personal or financial information. Often, once seniors give them money, scammers ask for more. When they trick victims into withdrawing from retirement accounts, it can affect taxes.
- Protections for businesses and tax professionals: The IRS reminds tax professionals of their legal obligation to have a written information security plan and to use multi-factor authentication. Businesses should update security measures and remain vigilant against cyberattacks.
- Identity Protection PIN: An identity protection PIN is a six-digit number that prevents someone else from filing a tax return using a taxpayer’s Social Security number or individual taxpayer identification number. If taxpayers don’t already have an IP PIN, they can get one as a proactive step to protect against tax-related identity theft. Anyone with an SSN or ITIN can get an IP PIN, including individuals living abroad. Apply for an Identity Protection PIN.
“Tax season invites opportunity, not just for refunds, but for scammers,” said Kimberly Reece, Financial Crimes Customer Advocacy Manager at Regions. “Staying alert will help protect your identity, your money and your peace of mind.”
How to Protect Yourself and Your Refund
Tax scams can happen to anyone. Protect yourself by visiting IRS.gov for official guidance, or report suspicious activity to the IRS at [email protected].
What to Do If You’re a Victim
If you believe you’ve been a victim of identity theft, go to IdentityTheft.gov for recovery steps. Staying informed and proactive is the best defense against fraud.
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.