As we approach another tax season, it’s not just the crunch of numbers that should be on our minds but also the heightened risk of falling prey to cyber scams. The Internal Revenue Service (IRS), following its eighth annual Security Summit, has issued an early reminder: Be vigilant against phishing and smishing scams. This advice isn’t just for those in the U.S. − cybercriminals are sharpening their tactics globally. Let’s walk through essential tips to help you navigate this tricky period safely and confidently.
Pro Tip: File Your Taxes Early
One effective strategy to avoid tax scams is to file your taxes as early as possible. Early filing can prevent cybercriminals from submitting fraudulent tax returns in your name. The sooner you file, the less window of opportunity you give to scammers.
Tax season universally involves sensitive information that cybercriminals live to exploit. The IRS warns specifically about phishing (fraudulent emails) and smishing (fraudulent text messages) scams, where attackers masquerade as a trustworthy entity to deceive you into divulging personal information. These scams are a global menace, affecting taxpayers and tax professionals alike.
Understanding Phishing and Smishing
Phishing and smishing scams are insidious because they mimic legitimate communication. You might receive an email or text message that appears to be from your tax authority, asking for personal details or directing you to a fraudulent website. The immediate impact can range from stolen identity to financial loss. Awareness is the first step in defense.
Each tax authority has its preferred methods of communication. For instance, the IRS generally contacts taxpayers via mail, not through email or text messages. Familiarize yourself with how your local tax agency communicates to better spot potential scams.
Critical Thinking: Your First Line of Defense
In the digital age, a moment of haste can lead to a lifetime of regret. Always pause and think before clicking on links in emails or text messages, especially if they’re unsolicited. Look out for tell-tale signs of scams: generic greetings, misspelled URLs, and requests for sensitive information are all red flags.
How you manage your tax documents can significantly affect your vulnerability to scams. For digital documents, use strong passwords and store them securely. For physical documents, keep them in a safe place and shred any unnecessary paperwork. These safeguards not only help in organizing your tax information but also prevent potential identity theft.
Beyond the basics, consider beefing up your cybersecurity measures. Use reputable antivirus software, keep your operating system and applications updated, and enable multi-factor authentication where possible. These steps create added barriers against cybercriminals.
Another crucial measure to enhance your tax security is obtaining an IRS Identity Protection PIN (IP PIN). This six-digit number adds a layer of protection since it’s known only to you and the IRS. It helps prevent the misuse of your Social Security number on fraudulent federal income tax returns. To get an IP PIN or learn more about it, visit the IRS’s IP PIN page.
What to Do If You Fall Victim
If you suspect you’ve been targeted or have fallen victim to tax fraud, act promptly. Report the incident to your tax authority – for example, the IRS – and consider informing local law enforcement. Quick action can mitigate the damage and help authorities track down the perpetrators.
As we navigate through tax season, staying informed and vigilant is crucial. Remember, cybersecurity is not a one-time task but a continuous effort. By following these guidelines and staying abreast of the latest security trends, you can significantly reduce your risk of falling victim to tax season scams. Stay safe and approach this tax season with confidence and caution.
For more detailed information and the latest updates, visit the IRS’s official website or your local tax authority’s online resources. Knowledge is power, especially when it comes to protecting yourself online.
By: Travis Strong (Wooster)