You may think we harp on you a lot about protecting yourself against identity theft and tax scams. You are right…! But we do it because having your identity stolen becomes a financial nightmare, sometimes taking years to straighten out. Identity thieves, aka scammers, are clever and relentless. They are always coming up with new schemes to trick you. And all you have to do is slip up just once to compromise your identity, and the nightmare will begin.
What scammers try to do is trick you into divulging personal information. For example, information like your bank account numbers, passwords, credit card numbers, or Social Security number.
Common ways scammers work
One of the most popular methods scammers use is requesting your personal information by e-mail. Additionally, identity thieves are very skilled at making their e-mails look real. Just as if the emails came from a legitimate source like the IRS, your credit card company, or a bank.
Be very careful when responding to e-mails asking you to update things. For examples, your account information, personal identification number (PIN), or password. First and foremost, you should be aware that no legitimate company would make such a request by e-mail. If one does, the e-mail should be deleted and ignored, just like spam e-mails.
We have seen bogus e-mails from scammers that looked like they were from all kinds of other real companies. The more real these bogus emails appear, the easier it is to get people to click through to a website. The intent of the scammers is to have the person reading the email click through to a website. And since the website also appears legitimate, that is where they have you enter your secure information.
Examples of how scammers try to trick you
- E-mails that appear to be from the IRS. Most of these scams indicate you have a refund. Then claim that to process the refund, they need additional information. The IRS never initiates communication via e-mail! If you receive this type of e-mail, right away, you should know that it is bogus. If you are concerned, please free to call this office.
- E-mails from a bank indicating that it is holding a wire transfer for you. However, banks needs your bank routing information and account number. Don’t respond; if in doubt, call your bank.
- E-mails saying you have a foreign inheritance and that the sender needs your bank info to wire the funds. The funds that will get wired are yours going the other way. Remember: if it seems too good to be true, it generally is.
We have seen cases where elderly individuals have been duped out of hundreds of thousands of dollars. Sometimes, these scammers have taken these elderly individuals entire life savings.
Don’t be Fooled – Scammers Use Fear as a Powerful Tool
The scammers primarily rely on individuals’ fear of the IRS. Additionally, pair that with a phony urgent need to make a payment to avoid arrest, foreclosure, or property seizure.
We could go on and on with examples. The key here is for you to be highly suspect of any e-mail requesting personal or financial information, or requesting an immediate tax payment. Scammers will generally request payment be made by gift card, which should be an immediate RED FLAG!
A good rule of thumb is to STOP – THINK – DELETE.
If you receive an email from any of the following entities, and feel uncomfortable ignoring it, give us a call.
- The IRS
- Your state taxing agency
- A credit card company
- Or a financial institution
How Scammers Reach Out to You
This is the time of year when the IRS sends correspondence to taxpayers. Knowing this, scammers will send fake letters to trick people into making payments on bogus tax liabilities. As a result, taxpayers need to be very careful to avoid being hoodwinked by these thieves. The best practice is to have a tax professional review any letter that you receive before you take any action. If the letter is real, then it will require a timely response, but if it is fake, it should be ignored.
Scammers have also been known to call individuals on the phone. For example, they threaten immediate arrest if a payment related to a phony liability is not immediately made. Just the threat of arrest is enough to know that the call is from a scammer. At that point, you should immediately hang up.
Bottom line: you need to be on guard against these scammers at all times. Your life can become a nightmare if your identity is stolen.
Identity thieves can even file tax returns under your Social Security number. They claim huge refunds and leave you with a horrendous mess to clean up with the IRS. Don’t be a victim.
Please give this office a call at (360) 778-2901 if you believe your tax ID has been compromised. We may be able to help sort out the mess with the IRS and get you back on track.
Congress Passes Last Minute Tax Changes
