Social Media Tax Scams, Phishing Texts, and Fake Refunds

Common Tax Scams to Watch For

Social Media Scams

Bad tax advice on social media can mislead taxpayers about their credit or refund eligibility. Influencers may convince taxpayers to lie on tax forms or suggest the IRS is keeping a tax credit secret from them. Social media posts may put taxpayers in touch with scammers. Be skeptical of unsolicited tax advice and always verify information directly through official IRS channels.

Phishing and Smishing

The IRS frequently warns against phishing emails and smishing texts, which are common tactics used by criminals to steal personal and financial information. The impersonator wants taxpayers to send them money. Opening links and attachments may harm their computer. Never click on suspicious links or download attachments from unknown sources claiming to be from the IRS.

Protection for Seniors

Scammers target people over age 65 or nearing retirement for personal or financial information or money. Often, once seniors give them money, they ask for more. When scammers trick them to withdraw from their retirement account, it could affect their taxes. Seniors should be extra cautious and verify requests through official channels before sharing any information.

Protections for Businesses and Tax Professionals

The IRS reminds tax professionals of their legal obligation to have a Written Information Security Plan and to use multi-factor authentication. Businesses are also advised to update their security measures and remain vigilant against cyberattacks. Implementing robust security protocols is essential to protecting client and customer data.

Protect Yourself

Steps You Can Take Today

• Verify Official Communications: The IRS will never initiate contact via email, text, or social media. Always go directly to IRS.gov or call the IRS at 1-800-829-1040.
• Get an Identity Protection PIN: An identity protection PIN is a six-digit number that prevents someone else from filing a tax return using your Social Security number or individual taxpayer identification number. If you don't already have an IP PIN, you may get one as a proactive step to protect yourself from tax-related identity theft. Anyone with an SSN or an ITIN can get an IP PIN, including individuals living abroad.
• Use Strong Passwords: Create unique, complex passwords for all financial and tax-related accounts. Use multi-factor authentication whenever available.
• Monitor Your Accounts: Regularly check your bank and credit card statements for unauthorized activity. Consider placing a fraud alert or credit freeze with the major credit bureaus.
• Report Suspicious Activity: If you receive a suspicious email or text claiming to be from the IRS, forward it to phishing@irs.gov. Report identity theft at IdentityTheft.gov.
• Stay Informed: Keep up with the latest scam warnings from the IRS and Security Summit partners. Share this information with family, friends, and colleagues.

Conclusion

Tax season brings increased risk of scams and identity theft. By staying vigilant, verifying official communications, and taking proactive steps like obtaining an Identity Protection PIN, you can significantly reduce your risk. Remember: the IRS will never contact you first via email, text, or social media. When in doubt, reach out directly to the IRS through official channels.

If you have a question about if something is safe our not, reach out to the tax professionals at Arch Tax. Schedule a free call.

Stay safe and protect your personal information this tax season.