New Email Tax Scam: What can you do to avoid it?

For most taxpayers, tax season may have come to an end but for scammer, this isn’t the case. Recently, the Internal Revenue Services (IRS) warned taxpayers and tax professionals about the danger brought by a new IRS impersonation scam email.

According to the IRS, although the email subject line may vary, the most common phrases use by scammers are “Automatic Income Tax Reminder” or Electronic Tax Return Reminder.” Links that are meant to look like the IRS website containing details about the taxpayer’s refund, electronic return or tax account are included in the emails. A “temporary password” or “one-time password” is also contained in the email for the purpose of granting access to the files. These files, however, are actually malicious. Scammers will be able to download software that tracks every keystroke without you knowing once the malware files are installed on your computer. You are therefore giving away confidential information such as passwords to your financial accounts.

You need to know that the IRS does not send unsolicited emails and never emails about the status of refunds to taxpayers.

According to the IRS Commissioner Chuck Rettig, your tax refund or sensitive financial information will not be discussed by the IRS over emails but this goes to show that the latest scheme is yet another reminder that thieves are scamming all year-round. He is encouraging everyone to always be on guard.

You need to stay away from email, text messages, or social media channels that request personal or financial information because the IRS never initiates these things. If you receive requests for PIN numbers or passwords used to access your credit cards, banks or other financial accounts, never pay attention to them. In addition to this, the IRS also doesn’t call taxpayers to demand payment immediately through a specific payment method like prepaid debit card, gift card, or wire transfer. If you owe taxes, you will typically receive a bill from the IRS.

How to respond to scammers?

The 2019 “Dirty Dozen” list of tax scams include phishing and phone scams and are on top of the list. Taxpayers are put at risk by these scams which is also the common thread or topic according to the IRS. Instead of engaging or responding to scammers, here’s what you should do:

• Hang up immediately if you receive a call from someone claiming to be from the IRS and you do not owe tax of if you already know it’s a scam.
• Don’t call them back if you receive a robo call or telephone message from someone claiming to be from the IRS and you know you don’t owe tax. If you are already aware that it’s a scam, even better.
• Never give out any information from someone claiming to be with the IRS over the phone and you owe tax or think you may owe tax. Find out more information by calling the IRS back at 1.800.829.1040.
• If you receive an email from an unknown or suspicious source, never open a link or attachment. Do not click on hyperlinks if you are not sure about the authenticity of an email. Going to the source’s main web page directly is must better.
• Make sure you only use strong and unique passwords to protect online accounts for each account. The longer your password is the better. If you’re on a website, you can lie about important details because crooks may know some of it.
• If it’s possible, use a two-or multi-factor authentication. This means that in addition to entering your username and password, your mobile phone or another device will receive a security code that you will use to open your financial accounts.
• Report to the Treasury Inspector General for Tax Administration right away if you believe you’re a victim of an IRS impersonation scam. Its IRS Impersonation Scam Reporting site will receive your report and you can also email to the IRS using phishing@irs.gov with the subject line “IRS Impersonation Scam.” 

If you remain alert, you will be able to keep your personal information safe. Assume that it’s a scam right away if you’re in doubt. The IRS website will give you more tips on how to protect yourself from identity theft as well so make sure you visit their site.