Doing taxes can be stressful enough without worrying that your sensitive information may fall into the wrong hands. With more and more taxpayers doing their taxes online, having awareness of potential threats is the first step in practicing cyber safety this tax season. Here are 4 of the most popular tax scams used by hackers each year to be on the lookout for:
- Tax Refund Fraud – This scam involves and filing false returns with them. They will typically claim a low income with high deductions and will file electronically. When a taxpayer goes to legitimately file their return, it is rejected by the IRS because someone else already filed under that identity. To prevent this, one can request an Identity protection PIN from the IRS before filing. This is a six-digit pin that must be used on a tax return in addition to an SSN in order to verify the identity of the taxpayer.
- W-2 Email Phishing Scam – Some hackers choose to go straight to the source for private information: employers. Cyber criminals have been known to trick major companies into turning over copies of W-2 forms for their employees. This is actually a CEO imposter scam, where a criminal pretends to be a top company employee and asks payroll or human resources for sensitive information. This information is then used to file bogus returns or is sold online to other criminals.
- IRS Phone Scam – Scammers make calls claiming they are with the IRS, acting as though a tax bill is owed that one must pay immediately or be arrested. They use common names to identify themselves and fake IRS badge numbers to appear legitimate, send fake emails to support their verbal phone claims, and they will usually call again claiming to be the police department or the DMV in an attempt to extort additional funds. Yikes! One thing to note: the IRS will NEVER call an individual. They send official notices in the mail, but if the IRS pops up on the caller ID, don’t answer.
- Canceling Your SSN – Criminals are making calls and threatening to suspend or cancel your Social Security numberuntil overdue taxes are paid. The scam may seem legitimate because the caller has personal information, including the last four digits of your SSN. If someone calls and threatens to cancel or suspend your social security number, hang up immediately. If they call back, don’t answer. Write down the number and then report the call on this site, and send an email with the subject of “IRS Phone Scam” to firstname.lastname@example.org and include the phone number, as well as any other details that are relevant, in the body of the email.
With more taxes processed online and scammers always thinking one step ahead, it’s important for every employee receiving their W-2s to have cyber awareness training. Understanding the risks that are out there help people to feel more empowered to thwart them when handling personal online transactions.
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