Tax day is nearly here, but tax-related scams have surged for months.
Tax identity theft, in particular, is the big threat this time of year. That's when someone uses your social security number to file a phony tax return and collect your refund. You may not find out it happened until you try to file your real tax return and the IRS rejects it as a duplicate filing.
Here are a few things to look out for this time of year:
If you haven't filed your taxes yet, make sure you find a reputable tax prep service to do the job. If the wrong person gets your financial information, they could open credit cards, take out bank loans or file fake tax returns in your name.
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The IRS has an online database of trusted free tax prep services to help you choose based on your specific tax situation and location.
And with more than 81 percent of taxpayers now filing online, you need to be on the look out for unexpected "e-signature requests."
You may get a last-minute email asking for your digital signature to complete your tax return or review a critical document. In this scenario, scammers may ask you to provide a password or other personal information, or the message could come with an attachment that puts malware on your computer.
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What can you do to protect yourself?
Todd Kossow with the Federal Trade Commission shared the one step to take right now to prevent tax identity theft.
"[Taxpayers] can contact the IRS and obtain a PIN that's personal to them," Kossow said. "And basically what it does is it prevents … a fraudulent tax return from being filed in their name."
Here are a few key takeaways to protect yourself from tax identity theft this season:
- IRS imposter scams are still going around, so be weary of anyone who calls, texts, emails or messages you through social media claiming to be from the IRS. They may say you have an unclaimed refund or you owe them money. But the IRS will only ever reach out to you via mail.
- Protect your social security number and don’t give it out unless you know who you're talking to.
- Considering applying for an "identity protection pin" through the IRS.
For more information on how to get an identity protection pin, visit this section of the IRS' website.
