Tax season is here, and while it’s a time to file returns and manage finances, it’s also a prime opportunity for fraudsters to take advantage of unsuspecting taxpayers. Reports by the International Revenue Service (IRS), estimate that tax-related fraud is a $9.1 billion industry, targeting individuals who share sensitive financial information. To protect yourself, the IRS recommends filing your taxes as early as possible, even if you owe money, to reduce the risk of fraud.
How To Spot Tax Scams
Fraudsters often pose as IRS agents or use sophisticated phishing tactics to steal personal and financial data. Knowing how the IRS actually communicates can help you avoid scams.
The IRS will never:
- Call and demand immediate payment via gift cards, wire transfers, or cryptocurrency.
- Threaten arrest by law enforcement for unpaid taxes.
- Request bank account details over the phone for issuing refunds or payments.
If you receive a suspicious call:
- Record the phone number and hang up immediately.
- Report the call to the IRS at 800-366-4484.
- Forward caller details to phishing@irs.gov with the subject line “IRS Phone Scam.”
Recognizing Phishing Emails
Phishing emails designed to look like official IRS correspondence are a common tactic. These emails may contain dangerous links or attachments that can steal your financial information or infect your device with malware.
If you receive an email from someone claiming to be the IRS:
- Do not reply.
- Do not open any attachments.
- Do not click on any links.
- Forward the email to phishing@irs.gov and delete it.
How to Verify IRS Mail
The IRS primarily communicates through official mail. If you receive a letter requesting payment or asking you to call a specific number, verify its legitimacy by visiting IRS.gov. You can also search the form number online to determine if it’s a real IRS document or a scam.
Reporting Tax Fraud
If you suspect fraud or believe you have been targeted by scammers, take action immediately:
- Contact your banker to safeguard your financial accounts.
- File a complaint with the Federal Trade Commission (FTC) via their online reporting system.
- Report scams to the Federal Communications Commission (FCC) using their complaint form.
At Lake Ridge Bank, protecting your financial security is our priority. If you have questions about fraud prevention or need assistance, call our Client Support Center at (608) 223-3000 or visit any of our locations. Stay informed, be proactive, and protect your personal and financial information this tax season.
