Tax Season: A Hotbed for Scams This Year
As tax season approaches, it’s essential to be vigilant about scams. Experts warn that increased uncertainty surrounding the IRS and the growing sophistication of cybercriminals make this year particularly risky. Nearly two-thirds of Americans are concerned about scammers filing fraudulent returns in their name, a crime that can take years to resolve.
Why This Year is Different
This year, scammers may exploit the uncertainty stemming from recent workforce cuts impacting the IRS. These reductions could slow the agency’s response to scams, potentially leaving taxpayers vulnerable for longer periods. Additionally, the rise of generative artificial intelligence has enabled “hyper-realistic” phishing messages, including deepfake videos and audios, which allow scammers to target larger groups more efficiently.
Common Tactics and Red Flags
Fraudsters use various tactics to steal your money or identity. Be cautious of:
- Lookalike emails, texts, or calls impersonating the IRS.
- Unsolicited social media offers promising unusually high refunds.
Watch out for common red flags:
- A sense of urgency, demanding immediate action.
- Isolation tactics or threats.
- Promises of a large payout.
- Suspicious website links.
Cybersecurity experts say scammers prey on emotions, often trying to evoke fear or uncertainty. Many scams will ask you to act fast or click on a malicious link.
How to Shield Yourself from Tax Scams
Here’s how you can protect yourself from tax fraud:
- File Early: File your taxes as soon as possible. This limits the window for criminals to file a fraudulent return in your name, by preemptively using your Social Security number.
- Get an Identity Protection PIN: The IRS encourages you to request an Identity Protection PIN (IP PIN), a six-digit number. This acts as a two-factor authentication for your tax return, which can be requested from the official IRS website.
- Avoid Suspicious Communications: The IRS will never contact you via email, text, or social media requesting your personal information. Contact the IRS directly through its official website if you need further assistance.
- Use Trusted Preparers: If you need help with your taxes, only use trusted, accredited tax professionals.
- Protect Digital Information: Keep past tax filings safe by password-protecting them and using a VPN when on public Wi-Fi.
- Freezing Your Credit: Experts recommend a credit freeze as an additional line of defense against identity theft; this prevents new credit accounts from being opened in your name without your explicit permission. You can readily unfreeze your credit to obtain a loan.
Expert Insights
Dave Chronister, an ethical hacker and CEO of Parameter Security, cautions that uncertainty is a primary emotion that scammers exploit. He advises taxpayers to stick to what they know and trust with their tax filing. Chronister also reminds that social engineering is more about emotion than intelligence, and vigilance is key.
Chris Pierson, CEO of cybersecurity firm BlackCloak, notes the potential for reduced oversight at the IRS, which could create a riskier environment. The loss of personnel could hamper the ability of the agency to proactively identify and respond to fraud.
Remember, scams succeed because they prey on our emotions. Take a breath, assess the situation, and trust your instincts. It’s human to fall for scams, but by staying informed and vigilant, you can protect yourself this tax season.
