Cybersecurity: Tax scams

Watch out for tax scams

Taxpayers should be vigilant when they receive a suspicious communication claiming to be from the Internal Revenue Service, requesting personal information such as a Social Security number, credit card number, financial account number or passport number.

These scams typically start with a phone call (vishing), an email (phishing) or a text message (SMSishing) saying you owe back taxes, or that you are getting a larger refund than expected. The criminal poses as an IRS agent in an attempt to gather personal information or to pressure you into making a payment.

Here’s how it works:

Criminals call you claiming that they are issuing a tax refund and need you to provide personal information to process the tax return.
The criminals play on your emotions by creating a sense of fear, indicating that failure to comply with their money demands may lead to your deportation, a lawsuit or an arrest if you do not pay immediately.
You will get an email or text message saying that several discrepancies have been found with the taxes you filed, which need to be updated. The email includes a link where you can update your information, or an attachment, like a refund spreadsheet or form that actually contains malware or ransomware.
Criminals will try to trick you with what appears to be an e-transfer or a direct deposit from the IRS for a tax refund to your financial account. You will be asked to click on a link to deposit this money into your account.

What you should do:

Remember that the IRS will never ask you for personal/confidential information over the phone, through an email or in a text message.
If you suspect you may be the victim of fraud or have been tricked into giving personal or financial information, contact your financial advisor right away.