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Tax season is always a busy time of year, especially for scammers. according to Federal Trade Commission (FTC)A text or email about your “tax refund” is always a scam. These messages are phishing scams designed to steal your personal information or your identity.
Here’s what you need to know about these tax scammers, what to watch out for, and how to protect yourself.
tax refund scam
A Jan. 22 notice issued by the FTC says the scams typically start with a text or email that looks like it’s from the IRS or a state tax office, saying it has “processed” or “approved” your tax refund claim. To verify and send the payment, it asks you to click a link and enter your Social Security number and bank account information.
If you click on the link and share your personal details, the scammer may steal this information to claim your tax refund or use it to open other accounts.
what to pay attention to
The most important thing to understand about the IRS is that it doesn’t act immediately, said Chris Simpson, director of the IRS. Cyber Security Center of National University.
“If you owe money or have a problem with your return, you will receive a letter in the mail and you will have a reasonable time to respond,” Simpson wrote in an email.
This, he explained, is what makes these scams easy to spot. “Any unsolicited contact that creates pressure, whether email, text, social media message or phone call warning of immediate penalties, is almost certainly not the IRS,” he said.
Simpson said you should also pay attention to the following:
- Promise of huge refund or special credit
- Unsolicited notifications regarding unclaimed refunds
- Request for gift card payment
- A message is prompting you to take immediate action.
how to protect yourself
Tax season gives cyber criminals the perfect opportunity to target taxpayers. But there are ways to protect yourself, Simpson explained. For one, consider getting an IRS Identity Protection PIN (IP PIN), a six-digit number that prevents fraudulent filings available to all taxpayers. IRS website.
Simpson also recommended verifying communications through official channels. Additionally, before clicking a link, hover over it to check the destination and always make sure it leads to a legitimate government site with a .gov domain.