April 2023
Fraud Alert

It’s Tax Time!

That means that while you are getting your papers in order, fraudsters are waiting on the sideline to take advantage of unsuspecting victims. Scammers love tax time because they know people fear getting into trouble with the IRS. But many fraudsters are using tactics the IRS would never use, making them easy to spot. We are here to make you aware of a few tax scams, so you don’t become a victim!

Here are a few of the tax scams to have on your radar:

Text messages:

Ever notice how a text message instantly gets your attention? Scammers know this too, which is why they often send fake messages with links that claim to be valid IRS websites. It’s important to know that the IRS doesn’t use text messages to discuss individual tax information. Make sure you don’t click a link in a text message from an unknown number.

Social media:

Unless you have your privacy settings turned up, your social media accounts are open for fraudsters to send you messages. Just like text messages, they may claim to be from the IRS, which are spoofed accounts, because the IRA will not contact you via social media. Be extremely cautious if you receive tax-related messages via social media platforms.

Phishing emails:

Cybercriminals often send emails that look legit with IRS look-a-like logos that appear official. The tipoff that it’s a fraud is the email requesting personal or financial information, which the IRA will not do. Never click on any links or open attachments in unexpected emails and report any suspicious content directly to the IRS.

Phone scams:

It’s probably not a shock that the average person receives about 31 spam calls per month. Scammers know when they mention the IRS, people tend to listen because they’re fearful they owe taxes or made a mistake on their form. The fraudster may use your name and give a fake employee title to sound official in impersonating an IRS representative. They can even alter caller ID numbers to look more legitimate. The tipoff it’s a fake is if the caller tries to threaten or bully you into paying a fraudulent tax bill or asks for immediate cash payment, wire transfers or debit card information by phone. If the IRS needs to contact you, they won’t leave a pre-recorded, threatening message. While there are times that the IRS will call, you would likely have received several official letters ahead of the call. If you are getting calls and you think you may owe the IRS, view your balance online or contact the IRS directly to confirm.

Unemployment fraud scams:

This is a different type of scam. It can go undetected for long periods of time. The way it works is that scammers try to use unemployment as a way to make quick cash by filing claims under names and personal information they’ve obtained fraudulently. Unfortunately, many victims of unemployment fraud don’t realize they’ve been victimized until tax time when they receive

specific tax forms detailing unemployment benefits that they never filed for or collected. If you receive a 1099-G form that’s incorrect or for benefits you didn’t receive, follow the steps outlined on the Department of Labor website to report suspected unemployment fraud.

Tax-related identity theft

Like unemployment fraud, many times, you don’t know that you are a victim of identity theft until you file your tax return. You go to file your return only to find out that one has already been filed with the same Social Security number. The IRS recommends taking these steps if you suspect you’re a victim of tax-related identity theft.

Tax-related or not, it’s crucial that you continually monitor your personal accounts for any suspicious activity. Periodically request and review your credit report, which you can obtain from the credit bureaus for free. If you see accounts you don’t recognize on your credit report or spot unfamiliar transactions, you consider taking steps to report and develop a recovery plan for identity theft.

Remember, scammers can be very convincing, and they are good at what they do. Always pause and do your due diligence to confirm the legitimacy of message, request, or website. Remain vigilant of suspicious communications that come to you at all times—especially during tax season. If you still aren’t sure, you can always reach out to your financial advisor. We are happy to help review anything suspicious!

If you have questions, please contact us.

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