Tax season is upon us, a time of year when 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 — 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 

Cybercriminals 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 that 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 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 to a real charity, to trick you into donating money to their own cause, filling their pockets. 
  • Fake tax preparers: Watch out for tax preparers who 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. 

Hopefully, you have avoided the common tax scams, but cybercriminals 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. 

Warning signs

  • You attempt to file a tax return online or by mail but are informed by the IRS or your state that they have already received one.
  • You are informed by the IRS that an account has been registered in your name at IRS.gov even though you have never created one.
  • You receive a transcript from the IRS that you did not request.

How to protect yourself

Identity theft resources 

  • If you believe you have become a victim of identity theft, visit IdentityTheft.gov to report it and create a recovery plan. 
  • For specific information and resources for tax-related identity theft, visit the Identity Theft Central webpage on the IRS website

Email and internet security best practices 

  • Never use public Wi-Fi to file your taxes or conduct other business such as online banking. Connect only to networks you trust. 
  • Remember that IRS.gov is the only genuine website for the Internal Revenue Service. All internet and email communications between you and the IRS would be through this site. 
  • Never send tax forms or other sensitive information via email. If you receive an email from an unknown source or one that seems suspicious, do not reply. 
  • Report tax-related phishing emails to [email protected]. Visit Tax Scams – How to Report Them on the IRS website for additional information. 
  • Report any suspicious emails (tax-related or otherwise) in your MSU Denver email account to [email protected] as well. 

IRS representatives — know how they operate 

  • The first point of contact by the IRS is typically via postal mail. The IRS will not contact you via email, text messaging or your social network, nor does it advertise on websites. 
  • IRS representatives always carry two forms of official credentials, and you can confirm their identity by calling a dedicated IRS telephone number for verification. 
  • The IRS does not accept payments by gift cards. 

Donating to charities 

Secure your identity 

  • Get an Identity Protection PIN (IP PIN) from the IRS to prevent someone else from filing a tax return in your name. 
  • Check with your state to see if it offers a similar program to file your state taxes. 

Original article from the Center for Internet Security: Fraud Alert! Beware of Common Tax Scams