In the News
In Beware This Incredibly Silly—But Still Effective—Tax Scam, Lily Hay Newman discusses a sneaky tax scam in which hackers utilize a stolen identity to file a tax return. Newman explains that the scammers file a legitimate tax return, have the money sent to the account of the actual individual whose identity they stole, and then pose as the IRS on the phone to have the unsuspecting individual ‘return’ the money to the scammers account. Newman identifies the ways in which scammers convince their victim to provide the finances they desire while also identifying how these methods are not methods ever used by the IRS.
Our Take
Everyone looks forward to receiving their tax refund, but if your identity has already been compromised, this may not work in your favor. Scammers who use their victims to receive financial gaines exploit the individuals trust in and fear of government-backed agencies. By sending an individuals’ tax return to their own account, attackers avoid the usual methods of detection that the IRS puts in place and that we as taxpayers are taught to look for.
Recommendations
So how can you avoid getting duped by these scammers?
- Be extremely wary of requests to move money around or pay down an unknown debt
- Always contact the IRS using published phone numbers if you receive any suspicious notice regarding your taxes, and keep up with their advice about tax scams
- File taxes early in order to prevent fraudulent returns from being filed, and alert the IRS if someone appears to have attempted to file any on your behalf
- Monitor your finances closely to catch suspicious activity as soon as possible