Now that the current tax filing season is open, scammers hope that distracted taxpayers will click on malicious links or provide personally identifying information (PII) that can be used to steal identities. Here are a few red flags to look out for—and what you should do if you think you might be a victim of a scam.
New Tax Season Scam
One such scam caught the attention of TIGTA (U.S. Treasury Inspector General for Tax Administration), which recently issued an alert. The scam involves a tax that suggests taxpayers can receive a $1,400 Economic Impact Payment. The text wording varies, but the messaging is similar. One version says, “You are eligible to receive a $1,400 Economic Impact Payment. Please provide your accurate personal information. We will deposit the amount into your bank account or mail a paper check within 1 to 2 business days.”
The text includes a link for the taxpayer to click to provide personal information.
As with many scams, the message contains a kernel of truth—enough to entice taxpayers to click. It is true that the IRS recently indicated that over one million taxpayers may have missed out on the Recovery Rebate Credit (RRC) claimed on their 2021 tax returns—the agency is taking steps now to mail out those payments. And while the amounts may vary, the maximum payment is, in fact, $1,400 per individual.
That’s enough to attract attention from taxpayers—but don’t. If you are an eligible recipient, the IRS will issue automatic payments to you. You don’t need to do anything, including clicking on any links. Payments will go out automatically in December and should arrive by late January 2025. The payments will be automatically direct deposited or sent by paper check—eligible taxpayers will also receive a separate letter notifying them of the payment.
Importantly, the IRS will not contact you via text or social media about your account.
Spotting Tax Scams
Government watchdogs like TIGTA aren’t the only ones noticing an uptick in tax-related tricks. The cybersecurity company Guardio has recently reported a staggering 77% surge in IRS-related spam messages.
Taxpayers often worry about making mistakes on tax returns, making them more likely to act quickly when receiving a tax-related message. That plays right into the hands of scammers, notes Nati Tal, head of Guardio Labs at Guardio, who says these texts are often used to manipulate taxpayers with urgency and fear. That includes loaded terms like:
- “Your tax return has an error. Act now to avoid penalties!”
- “You’re eligible for a $1,500 tax refund. Click here to claim it.”
- “The IRS has flagged your account. Verify your information immediately to avoid legal action.”
These messages typically include malicious links designed to steal personal information like Social Security numbers, bank details, or payment credentials. They may often be disguised as formal IRS forms or reputable tax and accounting advisory companies attempting to collect personal and financial information.
Tal says that taxpayers should also be on the lookout for red flags that include requests for sensitive information like Social Security numbers or bank details and links to unfamiliar or suspicious-looking websites (remember that government websites end in .gov, not .com).
Other red flags can include misspellings, grammatical errors, or inconsistent formatting in the message—a fuzzy IRS or similar logo can also be a sign.
What To Do If You Receive A Scam Message
If you receive a message that you believe to be a scam, do not engage. That means don’t click on any links or provide personal information to unknown sources. You can report the fraud by forwarding it to phishing@irs.gov. You can also report it to TIGTA.
If you’re not sure whether the correspondence that you receive is a scam, go to the original source. For example, if you think that the IRS might actually be trying to reach you (though, again, the agency will never reach out to you initially via email, call, text, or social media—you will receive written correspondence by mail), verify the message by contacting the IRS directly by phone (800.829.1040) or the official IRS website (irs.gov). Your online account at the IRS will include any notices mailed to you.
If you think you’ve fallen for a scam (like clicking on a bad link), Tal advises you to close the website tab immediately and refrain from providing additional information. If you were prompted to log in to a service like your Google account or bank account, immediately change the passwords for any accounts that might have been compromised and notify your bank or credit card provider immediately so they can monitor for fraudulent transactions. Finally, the incident should be reported to the IRS, and an identity theft report should be filed with the Federal Trade Commission (FTC). You may also want to report it to local law enforcement.
Scams aren’t limited to emails and texts—they can result from a quick Google. When looking for information, such as when to expect your refund, Tal says to only download apps or visit websites from official sources, such as the IRS.gov website or app stores (double-check the developer information in the app store to confirm it’s the official IRS app). And be cautious when searching for IRS tools and forms online. Malicious sponsored ads or SEO poisoning can lead to fraudulent websites appearing at the top of search results—double-check where you’re headed or, better yet, head to official sources first (you can bookmark those to make it faster to find them next time).
Protect Your Loved Ones
Even if you think you’re safe from attacks, your loved ones could be at risk (admit it, we all have that one person in the family who will click through every ad or pop-up on their way to Twisted Tangle or Royal Match. How can you protect those folks? Tal suggests that share information with them about common scam tactics, such as fake refund offers or threats of penalties, and if necessary, take charge by assisting them in managing this process—if they receive any calls, SMS, or emails requesting financial information, encourage them to forward these directly to you. In that way, he says, you can be the “responsible adult” who helps protect your elderly loved ones from potential scams.
You can also help them set up security tools like Guardio on their devices to provide an extra layer of protection against phishing scams and other online threats. You can also regularly check in with them to discuss any messages they might have received and address their concerns.
Bottom Line
Don’t fall for the tricks. Keep your personal information safe by remaining alert. And, when in doubt, assume it’s a scam.
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