Tax Season: The Next Scam Season
I don’t know whether more money changes hands during the holiday shopping season or during tax season, but a lot is at stake between now and April 17 as people prepare tax returns. It’s a busy time of year for scammers, most of whom want to use fraudulent information to get your tax return money.
Probably one of the most common scams is someone calling from the IRS to say you owe back taxes. This happens every year and all year long, too. But there’s just one thing we want to remind you about, even if you know it: The IRS does not contact you by phone. Nor does the IRS contact you by email, a form of communications a scammer will use in a phishing expedition. The IRS sends you a letter.
The other scams you are likely to encounter are calls or emails from people or companies offering to prepare your tax returns and even provide you with an advance on your refund. The email scams are more insidious because if you click on a link, it could automatically trigger a breach of your computer that reveals sensitive information. If you follow through on a phone call or link, the scammer is going to request your Social Security number and other info that goes on a tax return. If the scammer is offering to advance you money from an expected refund, they’ll want your banking info, too. Once a scammer has this and other personal information, it’s easy to get credit cards and loans and commit crimes in your name.
From a computing point of view, we again remind you not to open emails from people you don’t know who offer help during the tax season. Delete them immediately. Do the same with an email from someone you know that seems out of context because it’s so easy to spoof an email address. For example, would you really expect Norman Rosenthal or Sterling Rose to prepare your taxes?
You can protect business and home networks and computers by making sure you have new, strong passwords for all networks and accounts. Strong passwords are long and contain a combination of upper- and lower-case letters, numerals and special characters. With the breach at Equifax, the risk of fraud is higher, and one of the problems it can lead to is that someone will file your tax return before you do.
With protection in place, you can use the internet for all of your tax-related activity, starting with IRS’s official website https://www.irs.gov/. In addition to being able to get tax forms and answers to questions, you’ll find links to help you find and verify information about tax preparers, including 10 tips for choosing one.
If you are preparing your own taxes, we recommend you use one of the established software providers to reduce your risk of a security breach, especially when you file online.
While we don’t prepare taxes, we can help you keep your networks and computers secure. Call us – 973-433-6676 – if you think your system may have been compromised. Call us or email us if you have any questions about system security or security settings for any software you use for tax preparation and filing.