How to Outsmart Online Scammers This Tax Season

Tax season is here, and while you’re focused on crunching numbers and filing returns, cybercriminals are hard at work trying to catch you off guard. Online tax scams are becoming more sophisticated, using clever tricks to steal your identity, money, and peace of mind. Here are some essential tips to help you stay ahead of scammers and protect yourself during this critical time.

1. Recognize Common Tax Scams

Scammers use various tactics during tax season. Some common scams include:

• Phishing Emails and Texts: Fraudulent messages that appear to be from the IRS or tax preparation services, asking for sensitive information.
• Fake IRS Calls: Scammers posing as IRS agents demanding immediate payment or threatening legal action. The IRS will typically make first contact with you via mail.
• Fraudulent Tax Preparers: Individuals posing as legitimate tax professionals to steal your personal information.
• Refund Scams: Fake claims about tax refunds that trick you into revealing financial details.

Tip: The IRS will never initiate contact via email, text, or social media to request personal or financial information. You can view how the IRS contacts you on their website.

2. Protect Your Personal Information

Your Social Security number (SSN), bank account details, and other sensitive information are prime targets for scammers. Here’s how you can safeguard them:

• Use Strong, Unique Passwords: Create complex passwords for online tax filing accounts and enable multi-factor authentication (MFA) whenever possible.
• File Early: The sooner you file, the less time scammers have to file a fraudulent return in your name.
• Secure Your Devices: Ensure your computer and mobile devices have the latest security updates and antivirus software.

3. Verify Tax Preparers and Filing Services

If you choose to use a tax preparer, make sure they are legitimate:

• Check Credentials: Use the IRS Directory of Federal Tax Return Preparers with Credentials and Select Qualifications.
• Read Reviews: Look for reviews and testimonials to confirm a tax preparer’s reputation.
• Avoid Preparers Who Promise Large Refunds: Be cautious of anyone guaranteeing unusually high refunds without reviewing your financial details.

4. Report Suspicious Activity

If you suspect you’ve been targeted by a scam:

• Report Phishing Attempts: Forward suspicious emails to [email protected].
• Contact the IRS Directly: Use official IRS contact channels to verify any questionable correspondence.
• Notify the FTC: Report scams to the Federal Trade Commission at IdentityTheft.gov.

5. Utilize Secure Internet Connections

When filing taxes online:

• Use a Trusted Network: Avoid public Wi-Fi for financial transactions. Cumberland Connect’s reliable high-speed internet ensures secure connections for online filings.
• Enable Firewall Protection: Activate firewall settings on your home network to add an extra layer of protection.

Stay safe and secure this tax season!