Tips for Tax Time: Avoid IRS Scams

Tax time is upon us, a sign that phishing season has begun.

Phishing is a cybercrime in which an individual is contacted by email, telephone or text message by someone posing as a legitimate institution to lure individuals into providing sensitive data like personal information, banking and credit card details, and passwords. The information is then used to access important accounts and can result in identity theft and financial loss.

Tax time is the perfect opportunity for a phishing attack to occur. In this article, we’ll cover some tax-related scams and explain ways criminals try to look and sound more legitimate. 

Generally, IRS scams have two traits: 

1. They appear to come from a known or trusted source, such as a bank. 
2. They tell a story, often with an urgent tone, to trick the receiver into opening a link or attachment. 

VISHING (Phone Phising)

Criminals will make aggressive calls posing as IRS agents in hopes of stealing money or personal information. A method you can use to identify IRS Vishing is to know what the IRS will never do. The IRS informs us that they will never do the following:

• Call to demand immediate payment using a specific payment method, such as a prepaid debit card, gift card, or wire transfer. Usually, the IRS will mail a bill to taxpayers who owe taxes.
• Threaten immediately bringing in local police or other law enforcement groups to have the taxpayer arrested for not paying.
• Demand that taxes be paid without allowing taxpayers to question or appeal the amount owed.
• Call unexpectedly about a tax refund.

It’s important to keep in mind, it doesn’t need to be tax time for a Vishing scam to be used. It’s not unlikely for victims to receive calls from a familiar number, such as their bank. The scammers will tell the victim that their account was compromised, and they will need to verify the account with the victim’s personal information.

The scammer may also direct the victim to a website and download software that would spy on the victim or give the scammer remote access to your computer. 

HOW TO AVOID A SCAM

• Block unwanted calls or text messages. 
• Don’t give your personal or financial information in response to a request you didn’t expect. Contact the source directly if you’ve received a request you weren’t expecting. 
• Resist the urge to act immediately.
• Know how scammers tell you to pay. You should never have to pay for a legitimate business with cryptocurrency, a wire transfer service, or a gift card. Further, never deposit a check sent to you and send money back to the solicitor (scammer).
• Stop and talk to someone you trust.