It is that time of year again – time to file your taxes and keep an extra-vigilant eye out for tax scams. In response to the ongoing COVID-19 pandemic, the federal government has extended the deadline to file taxes until May 15, an entire month later than usual. The extended deadline is good news for both filers and scammers. There is more time to file and more time for criminals to go phishing for new victims.
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IRS scams are nothing new, but this year, with the millions of outstanding stimulus checks sitting in waiting for filers who maybe haven’t filed for a few years or who weren’t using direct deposit and never received their check in the mail, the market for thieves is ripe. Fortunately, there are some basic precautions you can take to avoid becoming a victim.
Warning signs of an online tax scam:
- An email or link requesting personal and/or financial information, such as your name, social security number, bank or credit card account numbers, or any additional security-related information.
- Emails containing various forms of threats or consequences if no response is received, such as additional taxes or blocking access to your funds.
- Emails from the IRS or federal agencies. The IRS will not contact you via email.
- Emails containing exciting offers, tax refunds, incorrect spelling, grammar, or odd phrasing throughout.
- Emails discussing “changes to tax laws.” These email scams typically include a downloadable document (usually in PDF format) that purports to explain the new tax laws. However, unbeknownst to many, these downloads are almost always populated with malware that, once downloaded, will infect your computer.
Avoid becoming a victim:
- Be on the watch for IRS scams. The IRS will not contact you via email, text messaging, or your social network, nor does it advertise on websites. Additionally, suppose an email appears to be from your employer or bank claiming an issue requires you to verify personal information. In that case, this is most likely a scam as well. Don’t respond to these types of emails; always contact the entity directly.
- Criminals can intercept information sent through email. Make sure to consistently check your financial account statements and your credit report for any signs of unauthorized activity.
- Secure your computer. Ensure your computer has the latest security updates installed. Check that your anti-virus and anti-spyware software are running correctly and receiving automatic updates from the vendor. If you haven’t already done so, install and enable a firewall.
- Carefully select the sites you visit. Safely searching for tax forms, advice on deductibles, tax preparers, and other similar topics requires great caution. NEVER visit a site by clicking on a link sent in an email, found on someone’s blog, or in an advertisement. The websites you land on might look like legitimate sites but can also be very well-crafted fakes.
- Be wise with Wi-Fi. Wi-Fi hotspots are intended to provide convenient access to the internet; however, this convenience can come at a cost. Public Wi-Fi is not secure and is susceptible to eavesdropping by hackers. Therefore, never ever use public Wi-Fi to file your taxes!
- Look for clear signs. Common scams will tout tax rebates, offer great deals on tax preparation, or offer a free tax calculator tool. If you did not solicit the information, it’s likely a scam.
- Always utilize strong passwords. Cybercriminals have developed programs that automate the ability to guess your passwords. To best protect yourself, make your passwords difficult to guess. Passwords should have a minimum of nine characters and include uppercase and lowercase letters, numbers, and symbols.
If you receive a tax-related phishing or suspicious email, forward it as an attachment to abuse@txstate.edu. If you receive a similar email on your personal account, the IRS encourages you to forward the original suspicious email (with headers or as an attachment) to its phishing@irs.gov email account or to call the IRS at 800-908-4490. More information about tax scams is available on the IRS website and in the IRS Dirty Dozen list of tax scams.
Joel Ausanka Reese is an IT Projects Coordinator in the Information Security Office.
