Fraudsters are working year-round to exploit our sensitive tax information. But don't worry, we're here to help you stay one step ahead of these sneaky scammers. Let's dive into some simple tips to protect yourself and your loved ones from tax fraud.
Key Points to Understand
- IRS Impersonation Scams: Fraudsters pretending to be from the IRS will call, email, or text you, trying to get your personal information or money. Remember, the IRS will never ask for personal details or payments via phone or email.
- Fraudulent Tax Returns: Scammers use your stolen information to file fake tax returns and claim refunds.
- Identity Theft: Many victims discover they’ve been scammed when they try to file their tax returns and find that a return has already been filed in their name.
How to Protect Yourself
- Be Skeptical of Requests: Always verify the identity of anyone asking for your personal or financial information. Don’t respond directly to emails or texts asking for this information.
- Secure Your Documents: Use secure methods for sending sensitive documents, such as encrypted emails or trusted delivery services.
- File Early: File your tax return early to prevent fraudsters from filing in your name.
- Request an IRS PIN: Get a six-digit Identity Protection PIN from the IRS to prevent others from using your Social Security number to file a return.
- Use Cybersecurity Measures: Install antivirus software and be cautious of social engineering scams where fraudsters trick you into revealing personal information.
Everyday Precautions
- Monitor Financial Accounts: Regularly check your accounts and set up alerts for suspicious activity.
- Shred Sensitive Documents: Properly dispose of documents containing personal information.
- Report Scams: Report any tax fraud to the Federal Trade Commission and file an IRS Identity Theft Affidavit if needed.
Regulator-Validated Practices
- Verify IRS Contact: The IRS will never call or email you for personal information. Always verify through official channels.
- Secure Payments: Use electronic payments instead of paper checks to reduce the risk of interception.
- Use Trusted Sources: Only share personal information with trusted tax professionals who have strong cybersecurity practices.
Final Thought
Staying safe from tax scams requires vigilance and proactive measures.
For more, check out full report here.