Tax Season Is Prime Time for Scams
Tax season is when many people are vulnerable to scams. Fraudsters work year-round, but tax season sees an uptick in their activities. With the April 15 deadline approaching, it’s crucial to be vigilant and protect your information and money.
This year, the potential for increased IRS uncertainty and workforce cuts may add to the issues.
How Scammers Operate
Scammers employ various tactics to steal your identity, money, or other sensitive information. They may impersonate the IRS through emails, texts, or phone calls, or use unsolicited social media offers promising inflated refunds.
Experts stress that scammers prey on emotion and try to evoke fear or a sense of urgency. Many scams will ask you to act quickly or click on a malicious link.
Red Flags to Watch For
Be wary of these common red flags:
- Sense of urgency
- Isolation tactics or threats
- Promises of a large payout
- Suspicious website links
What’s Different This Year?
Cybercriminals may exploit uncertainty around IRS workforce cuts. Dave Chronister, an ethical hacker and CEO of Parameter Security, notes that scammers could use news of these cuts to impersonate the IRS and falsely promise taxpayers “new” ways of filing.
Chris Pierson, chief executive of cybersecurity firm BlackCloak, notes that workforce cuts decrease in oversight and could create a riskier environment for consumers.
Scams are also becoming more sophisticated, with the rise of generative artificial intelligence. Experts warn that this technology creates “hyper-realistic” phishing messages, and allows scammers to target more people at once.
How to Protect Yourself
To protect yourself, consider these tips:
- File early: Filing your taxes as soon as possible can help prevent scammers from filing a fraudulent return in your name.
- Use trusted services: Stick to familiar tax preparation software or a trusted accountant.
- Secure your information: Password-protect any downloaded past filings, and use a VPN on public Wi-Fi.
- Get an Identity Protection PIN: Request one from the IRS website.
- Freeze your credit: This prevents new credit accounts from being opened in your name.
- Verify IRS communication: The IRS will never contact you via email, text, or phone to ask for personal information. Always visit the official IRS website to verify any communications.
- Think before you act: Pause before clicking links or providing information. Ask yourself, “‘Is this too good to be true?'”
