Protect Yourself from Tax Scams: What You Need to Know
PURE Staff
The majority of taxes today are filed digitally. An increased online presence also means an increase in cyber threats.1 According to a recent study, tax-related identity theft has increased by 45% since 2020.2 These scams often include emails, phone calls or text messages claiming to be from the government. Hackers can purchase your personal information from data brokering websites and use it to target you and your loved ones, especially during tax preparation season.
How Hackers Use Your Data
Hackers use this wealth of information to craft personalized attacks, such as phishing emails, scam calls or fraudulent texts. They may pose as trusted entities, like government agencies or businesses, to trick you into divulging more personal information or sending them money.
Understanding how legitimate organizations operate can help you recognize scams. For instance, the IRS will never:
- Contact you via email, text message or social media to request personal information.
- Threaten you or demand immediate payment.
If you receive any communication claiming to be from the IRS that violates these guidelines, it’s almost certainly a scam.
How to Protect Yourself
To guard against tax-related identity theft and scams, consider the following steps:
- Obtain an IRS IP PIN: An Identity Protection Personal Identification Number (IP PIN) is a six-digit code that helps prevent someone else from filing a tax return using your Social Security number. You can request one directly from the IRS.
- Be Wary of Suspicious Calls: Scammers may call pretending to be from the IRS or a taxpayer advocate service. They might claim your Social Security number will be suspended unless you take immediate action or pay a fine. If you receive such a call, hang up and block the number.
- Watch Out for Phishing Attempts: Fraudulent emails or texts may mimic IRS communications to steal your personal information. Avoid clicking on links or opening attachments from unknown or unverified sources.
- Use Trusted Tax Professionals: Criminals often target tax professionals to gain access to client information. To protect your data, work with reputable tax services or professionals who follow strict security protocols.
What to Do if You Think You’ve Been Targeted
If you believe you’ve been targeted by a scam or fallen victim to fraud:
- Report phishing attempts to the IRS at [email protected].
- Notify the Federal Trade Commission (FTC) via their website.
- Contact your financial institutions to secure your accounts.
Hackers and scammers are constantly evolving their tactics. By staying informed and taking proactive steps, you can protect yourself and your loved ones from these threats.
