If you have an email in your inbox from the IRS it’s most assuredly a scam. Phishing and malware incidents are up 400% this tax season, according to the IRS. More people receive official-looking emails from scammers acting like they are from the IRS or other tax-related entities; this includes software companies.”E-mails can seek information related to refunds, filing status, confirming personal information, ordering transcripts and verifying PIN information,” the IRS warns consumers.
They want your Social Security number too. They might send messages via text message or through social media. If you have received something like this, it is almost for sure a scam: The IRS will never ask for personal information over email or text. Examples of subject lines used, says the IRS, include:
- Numerous variations in people’s tax refunds.
- Update your filing details, which can include references to W-2.
- Confirm your personal information.
- Get my IP PIN.
- Get my E-file PIN.
- Order a transcript.
- Complete your tax return information.
A possible outcome is that a thief will complete your return before you even file. As MONEY magazine has previously reported, around 1 million refunds—worth a whopping 5.2 billion—were paid directly to thieves in 2013. Protect yourself with these steps:
- 1. Never respond to emails that ask for personal information, especially if they are insistent or threatening.
- 2. If you receive an email from the “IRS,” call the IRS (800-829-1040), do not answer by email. Norton Security advises people to never give confidential information on forms embedded in emails.
- 3. In a nutshell, don’t respond to emails fishing for personal information.
Other steps you can take to prevent a thief from taking your refund include changing your passwords every year (from your email account and also for whichever tax service you are using), plus filing as early as possible. E-filing is a great deal safer than mailing in your tax return. Please don’t do it over public Wi-Fi or another unsecured network. Also, you should opt-in to have your refund directly deposited into your bank account, rather than ask that a check be mailed (which could be stolen before you get it).
Furthermore, refrain from clicking links in emails from people or businesses you don’t know. “Whether they say they’re a retailer or the IRS, never authenticate yourself to any entity that’s contacting you,” Adam Levin, co-founder of Credit.com, told my colleague.
If you have received one of these scam emails, it can be reported to [email protected].
Do you think you are already a victim of tax-related fraud? Here are a few ways to mitigate the damage:
- 1. File your taxes as early as you can.
- 2. Read all mail from the IRS, and if anything looks fraudulent, act without delay.
- 3. Report the crime with the local police, call the FTC Identity Theft Hotline at 1-877-438-4338, and the IRS at 800-829-1040.
- 4. Contact one of the three major credit reporting agencies — Equifax, Experian, or TransUnion — and ask that a fraud alert be placed on your credit records. You must request a freeze with each of the three bureaus and there can be a fee to freeze and unfreeze credit, depending on the state where you reside. Remember there is no cure for it and there are still other forms of identity theft you’re susceptible to even with a frozen credit report.
- 5. Check your credit reports and close any credit or financial accounts that have been tampered with or opened without your consent.
You might wish to buy a combination fraud/credit monitoring service, which provides instant alerts whenever anyone tries to open a credit account in your name. Again, the tax refund fraud is not possible without personally identifiable information.
To clear your tax record, complete IRS Form 14039, Identity Theft Affidavit. Continue to pay your taxes and file your tax returns timely, even if you do it by mailing in paper forms. Stay on top of your case. If you contacted the IRS about taxpayer ID theft and did not receive a resolution, also contact the Identity Protection Specialized Unit at 1-800-908-4490 about your problem.
Be alert. You have to know that if someone has enough of your personal information to file a tax return, they have more than enough information to commit different forms of identity theft. Read every explanation of the benefits statement and be on top of any communication you may receive from a debt collector. It may not be a mistake.
