What tax scams should I be watching out for this year?
This question was answered on January 25, 2017. Much of the information contained herein may have changed since posting.
Many in the cyber-security business refer to tax season as ‘Christmas for Criminals’ because of the amount of sensitive personal information that will be in circulation.
The IRS reported a nearly 400% surge in phishing and malware incidents in the 2016 tax season and you can bet that number will be as high, if not higher this year.
Fraudulent returns continue to top the list of scams because electronic filing makes it so easy to file returns when a thief acquires your Social Security Number.
In fact, the problem has gotten so big that the IRS will be delaying refunds for all taxpayers until February 15th this year in order to give them more time to screen for fraud.
Start With Your Computer
One the easiest ways for thieves to steal your personal information is directly from your computer if you aren’t paying attention.
Programs designed to sneak in and silently monitor your keystrokes (a.k.a. keyloggers) or steal your e-mail credentials won’t announce themselves.
If your computer takes forever to startup or seems to be ‘stuck in the mud’ when you try to use the Internet, these are clear signs that unnecessary processes are running in the background of your computer.
Since you’ll be working with a lot of sensitive information via your computer, whether you’re preparing your own return or gathering info for a tax preparer, make sure your computer is free of any potential malware.
If you aren’t comfortable running through the various processes yourself, make sure you find someone you trust to do a thorough checkup/cleanup before you get started.
Don’t Send Sensitive Info Via Email
Email has replaced the fax machine for sending documents, but it’s one of the least secure methods of transferring sensitive information to your tax preparer.
Not only can your unprotected information be intercepted by others, a record of your sensitive information gets stored in your email program unless you remember to delete all your sent items.
Check with your tax professional as they should have a more secure method for you to share electronic documents.
Watch For Phishing and Phone Scams
One of the many known phishing messages pretends to be from the IRS asking you to update your e-file account to make sure you get your refund.
The IRS will NEVER send you an e-mail message or call you; they only communicate with taxpayers via U.S. Mail. You can report any IRS phishing scams by forwarding the message to [email protected]
File Early To Beat Fraudsters
Fraudulent tax returns continue to be a billion dollar expense for the Treasury Department, but one of the ways you can avoid becoming a victim is file as early as you can to beat them to the punch.
If they file a fraudulent claim before you, it can take an average of over 300 days for you to get the mess straightened out. If you believe you’re a victim of ID theft, the IRS Identity Protection Specialized Unit phone number is (800) 908-4490
About the author
Posted by Ken Colburn of Data Doctors on January 25, 2017