Tax season fraud and malware campaigns have a seemingly endless number of ploys, often using flagrantly aggressive tactics, like applying threats and an extreme urgency to act or face fines, imprisonment, or legal action.
Tax season-related schemes delivered in emails or text or social media messages are seemingly never-ending. Many are designed to steal financial information and/or infect machines with malware, to include ransomware, which prevents you from accessing a computer until a ransom is paid to the attacker. These scammers are crafty, so be cautious about any tax-related messaging from someone you don’t know.
“Fraudsters prepare for tax season with all the ardor of students preparing to take the SAT,” said Chelsea Budzko, Information Security Officer at SELCO. “These criminals are assertive, well-trained in their deceptive discipline, and know how to play the human psyche like a first-chair virtuoso, commonly using fear, extortion, and/or a sense of urgency. Preventing yourself from becoming a victim of tax fraud means being aware and diligent during tax season.”
It’s important to know that the IRS will never do the following, but scammers’ tactics commonly include:
- Demanding immediate payment using a prepaid debit card, gift card, or wire transfer.
- Threatening to immediately bring in local police or other law enforcement.
- Asking for a credit or debit card number or a password/PIN over the phone.
- Demanding payment of taxes without giving you the opportunity to question or appeal the amount.
Some common scams
Every year, the IRS releases its Dirty Dozen list. The following are a few that never fail to make the cut.
Phishing & smishing. Taxpayers and tax professionals need to keep their guard up for fake communications from entities posing as legitimate organizations like the IRS, state tax agencies, and tax software companies. In general, the following email scenarios should raise red flags:
- You don’t know the sender and the email includes an attachment or link.
- You know the sender, but the email is unusual and not expected.
- The email claims to be directly from the IRS, but the sender’s email address is not associated with the IRS.
- Emails are purporting to be from the IRS—be a healthy skeptic!
Fake charities. Bogus charities are always on the prowl, especially during a crisis or natural disaster. Scammers set up fake organizations to tug on the public's heart strings. If they get a hook in, they can steal money and personal information.
Social media scams. Social media is a free-for-all for sharing information with just about anyone. Scams conducted through these channels frequently prey on major events like government shutdowns and pandemics to try tricking people.
'Vishing'. Phone calls from criminals impersonating IRS agents remain a threat to taxpayers. Taxpayers are encouraged to always be wary of this scam.
Help spread the word about these scams to cut the profits for fraudsters during tax season.
“Your money was hard-earned and belongs to you,” Budzko said. “Protect it.”
Are you a victim of fraud?
If you've been a victim of tax fraud, you can find instructions for reporting it on the IRS website.
