Tax Season is Prime Time for Scams
As tax season looms, the potential for scams increases. The IRS is dealing with workforce cuts, which could create even more uncertainty this year. Taxpayers need to be vigilant in protecting themselves from identity theft and fraud.
File Early to Get Ahead of Scammers
Filing your taxes as early as possible is one of the most important steps you can take to protect yourself. This strategy limits the window of opportunity for criminals to file a fraudulent return in your name.
The IRS also recommends getting an Identity Protection PIN (IP PIN), which is a six-digit number assigned directly by the IRS. This PIN is required for those who have previously been victims of tax fraud. The IP PIN acts as a form of two-factor identification for your tax return, helping to prevent scammers from succeeding.
Recognizing the Red Flags of Tax Scams
During tax season, fraudsters employ various tactics to steal your identity, money, or other sensitive information. As you prepare your return, due April 15, it’s crucial to be extra cautious. Cyber security experts stress that scammers prey on emotion, often inducing fear or uncertainty.
Be aware of these common red flags:
- Sense of urgency
- Isolation tactics or threats
- Promises of a big payday
- Suspicious website links
Scammers use urgent language, threats, and offers that seem too good to be true. They may also urge you to click on malicious links or threaten arrest if you don’t respond immediately. Additionally, they may try to isolate you from trusted sources like family members or accountants.
What’s Different This Year?
This year, cybercriminals may exploit the IRS staffing cuts. Dave Chronister, CEO of Parameter Security, notes that scammers might exploit the news of these cuts and impersonate the IRS to falsely promise taxpayers “new” ways of filing. The workforce reductions could also slow the agency’s ability to respond to scams. As a result, malicious websites or predatory social media campaigns may not be taken down as swiftly, potentially leaving victims waiting longer for answers.
Chris Pierson, chief executive of cybersecurity firm BlackCloak, warns that the situation could “create a riskier environment for the consumer.”
Protecting Your Information and Money
Here’s how you can protect yourself:
- File as soon as possible. Filing early can make a big difference.
- Use trusted tax preparation methods. If you consistently use TurboTax or an accountant, continue doing so.
- Secure your existing files. Password-protect any past filings downloaded to your devices and use a VPN on public Wi-Fi.
- Get an Identity Protection PIN. Follow the IRS guidelines.
- Consider freezing your credit. This acts as an additional line of defense against identity theft and fraud.
- Verify all IRS communications. The IRS will never contact you by email, text, or phone asking for personal information. Always visit the official IRS website to verify any communications.
Additionally, always pause before you click, and be wary of anything that seems suspicious. According to Chronister, social engineering focuses on emotion, not intelligence, and anyone can fall for scams. Vigilance, not panic, is key. Keep your gut check going.
