Login
Who loves tax season besides accountants? Scammers.
Emotions can run high during tax time. Even if you’re pretty sure you did everything right, you may still have a few doubts kicking around. Did I file correctly? Did I claim the right deductions? Will I get audited? As it turns out, these are the very same anxieties that criminals use as the cornerstone of their attacks.
So yes, crooks indeed love tax season. Particularly online. And they’ll bait your digital world with several proven types of scams in an effort to cash in on what can be a somewhat uncertain time.
The good news is that you have plenty of ways to protect yourself from these scams. Let’s look at what scammers typically have in store, along with some practical advice to protect yourself as you file your taxes—things you can do to keep crooks out of your business this tax season. Don’t delay, download McAfee’s tax season security guide to avoid the latest tax scams.
First, know that you’re probably doing a good job with your taxes. Less than 2% of returns get audited and most discrepancies or adjustments can get handled easily if you address them promptly.
Still, the wariness of the IRS and intricate tax laws makes for ripe pickings when it comes to hackers, who prey on people’s fear of audits and penalties. Common scams include fake emails, phone calls from crooks posing as IRS agents, and even robocalls that threaten jail time.
What are crooks looking to do with their scams? Several things:
As if we didn’t have enough to worry about at tax time without crooks in the mix.
Investigating the landscape even more closely, we can turn to the authority itself, as the IRS has published its most recent top 12 tax season scams, a broad list that includes:
|
|
For a comprehensive look at each one of these scams, and for ways, you can steer clear of them, check our Guide to IRS & Tax Season Scams. However, there are some common threads to many of these scams.
For starters, plenty of tax scams involve crooks posing as an IRS employee, perhaps via a phone call or email, to glean personal information from you, or to demand payment—sometimes under the threat of penalties or even jail time. Crooks won’t hesitate to use strong-arm tactics like these and play on your fears. The good news is that such tactics are typically a sign that the contact isn’t legitimate. In fact, a quick way to spot a scam is to know what the IRS won’t do when they contact you. From the IRS.gov website, the IRS will not:
What will the IRS do? Usually, the IRS will first mail a notification to any taxpayer who owes taxes. IRS collection employees might call on the phone or make an unannounced visit to your home or business. If they require payment, the payment will always be to the U.S. Treasury. Read about other ways to know what the IRS won’t do when they contact you.
Scammers won’t limit themselves to posing as the IRS. They’ll act as an imposter in several other ways as well. For example, they may pose as a popular do-it-yourself tax brand, a tax preparer, or even as a phony charitable organization that promises any donations you make are tax-deductible.
Here, they may send you phony emails or direct messages or even ring you up with bogus telemarketing or robocalls designed to steal personal information.
In the cases where the scammers reach you online, the emails and messages they send will vary in their tone and polish—in other words, how authentic they appear. Some will look nearly legitimate and cause even the most hardened of digital skeptics to click on a phony link or download a sketchy attachment. Others, well, will look clearly like spam, complete with spelling and grammatical errors, along with clumsy use of logos, layouts, and design.
Taken together, both are ways that scammers get people to visit sites designed to compromise personal information … or to download malware like keyloggers that skim account passwords and ransomware that encrypt a victim’s files hold them hostage for a price.
Social media attacks also made the IRS Dirty Dozen. In a social media attack, scammers harvest information from social media profiles and turn it against their victims. Per the IRS, because “social media enables anyone to share information with anyone else on the Internet, scammers use that information as ammunition for a wide variety of scams. These include emails where scammers impersonate someone’s family, friends, or co-workers.”
With those personal details gleaned from social media, scammers will send phony links to scam sites, promote bogus charities, or flat-out ask for money or gift cards to “help them out” at tax time.
No question that bogus emails, messages, and phone calls remain a popular way for scammers to steal personal and financial information. Spam emails, messages, and the malicious links associated with them abound this time of year as well. It’s always to keep a critical eye open for these, and it’s particularly true during tax season.
View all emails with attachments and links with suspicion, even if they appear to come from a person, business, or brand you know. Confirm attachments with the people you know before opening. And if you receive a message or alert about an account of yours, visit that company or organization’s website directly to enquire into the status of your account rather than taking a chance by clicking on a link that could send you to a phony website.
One way to protect yourself from an identity thief from claiming a return in your name is to file yours before they do. In fact, many victims of identity theft find out they’ve been scammed when they receive an IRS notification that their tax claim has already been filed. Simply put, file early.
Here’s another tool that can help you fight identity theft. And get this: it’s not only helpful, but it’s also free. Through the Federal Trade Commission, you are entitled to a free copy of your credit report from each of the three major credit reporting companies once every 12 months. In this report, you can find inaccuracies in your credit or evidence of all-out identity theft.
Keep in mind that you get one report from each of the reporting companies each year. That works out to three reports total in one year. Consider this: if you request one report from one credit reporting company every four months, you can spread your free credit report coverage across the whole year.
As with much of the guidance we offer around social media, one of the best ways to prevent such social media tax attacks is to make your profiles private so that only friends and family can see them. That way, scammers will have a far more difficult time reaching you. Moreover, consider paring back the information you share in your social media profiles, like your alma maters, birthday, mother’s maiden name, pet names—any personal information that a scammer may use to compromise your accounts or the security questions associated with them.
Protecting your devices with comprehensive online protection software can help block the phishing emails and suspicious links that make up many of these tax attacks. Likewise, it can further protect you from ransomware attacks like mentioned above. Additionally, our online Protection Score looks for weak spots in your protection and helps you shore them up, such as if discovers that your info was compromised or part of a data breach. From there, it guides you through the steps to correct the problem.
Further, consider online protection software that offers identity theft protection as well. A strong identity theft protection package offers cyber monitoring that scans the dark web to detect misuse of your personal info. With our identity protection service, we help relieve the burden of identity theft if the unfortunate happens to you with $1M coverage for lawyer fees, travel expenses, lost wages, and more.
The IRS offers steps you can take in the event you suspect fraud or theft. Their current resources include:
As mentioned above, you can get even more up to speed on the different tricks hackers are using by downloading our Guide to IRS & Tax Season Scams. It’s free, and it offers more ways you can protect your identity and information this tax season and year ‘round.
The post The IRS “Dirty Dozen” – Top Tax Season Scams to Steer Clear of This Year appeared first on McAfee Blog.
Tax return preparation might be a little more complicated this year than usual for many Canadians with millions receiving Canada Emergency Response Benefit (CERB) payments and about 40% of the Canadian labor force turned to self-employment options to help them financially weather the pandemic storm.
Where there’s money and uncertainty, you’re likely to find scammers. After all, scammers tend to capitalize on uncertainty and use it as the entry point for their attacks. Whether it’s through a phishing email with a phony notice of reassessment, a text message threatening arrest, or a fake phone call from the Canada Revenue Agency (CRA), hackers often employ elements of fear in their attacks. McAfee’s 2021 Consumer Security Mindset study revealed that roughly 2 out of 3 Canadians (65%) plan to do their taxes online in 2021, with 12% of them doing so for the first time. With the increase in activities online, consumers are potentially exposed to more digital risks and threats, and knowing how these hackers tend to work doesn’t mean you have to live in fear. To help you identify and avoid potential threats, let’s take a look at some of the most common scams that hackers use during tax season.
Phone scams take one of two primary forms:
Some sophisticated scammers will weave stolen personal or financial data that they purchased on the dark web into their calls, such as bank or social insurance information. They intend to make their phony claims sound legitimate, hoping that an unsuspecting user will hand over their data or make a fraudulent payment.
So, what does a real call from the CRA entail? The CRA clearly outlines the reasons they’d be calling on their 2020 Tax Tips page and ways that you can follow up with the CRA to determine if a call is legitimate.
There are two instances where the CRA may contact you by email. One is during a telephone call or meeting with a legitimate CRA agent. The second is to send you a notification that you have a message or document for your review on a secure CRA site such as My Account, My Business Account, or Represent a Client. Anything else is likely a scam.
The one time where the CRA will send you an email containing links is if you have a call or meeting with an agent, as outlined above. Otherwise, you can be confident that an email with links is a scam.
This one is relatively straightforward: the CRA will never contact you via text, instant messaging, Facebook, WhatsApp, or any similar messaging service. If you receive such a message, delete it, and don’t click on any links embedded within it.
In many cases, hackers will aim to separate you from your money by demanding immediate payment in some form or other. They may request payment in pre-loaded debit cards, gift cards, e-transfer, or even bitcoin. Know that the CRA will never request payment in any of those forms.
When in doubt, ask yourself why this email or phone caller is demanding that you act immediately. Have you filed on time? Have you received written notice from the CRA already? Do you owe an installment payment? If the person contacting you leaves you unsure, you can confirm that the contact was legitimate by calling the CRA.
While recognizing the signs of tax-related fraud can help ease the burdens associated with these schemes, there are multiple steps you can take to prevent becoming a victim of tax scams in the first place. Follow these tips to stay on top of your tax return while securing your digital life:
Devices benefit from physical security. This is as simple as locking your smartphones, tablets, and computers with a PIN or password. Should one of those devices get lost or stolen, a lock provides a barrier for those who might try to access your personal and financial information on them.
Protecting your devices with comprehensive security software can help block the phishing emails and suspicious links that make up many of these tax attacks. Likewise, it can further protect you from ransomware attacks, another type of tax scam on the rise, where crooks hold your data hostage for a price. All in all, security software is always a smart move—tax time or any time.
Consider what’s on your old computer hard drive or stored away on your phone. Old devices tend to contain loads of precious personal and financial information. Look into the e-waste disposal options in your community that will recycle your old technology and do so securely.
While so many of our finances are handled electronically today (taxes included), we’d be remiss if we didn’t talk about physical security as well. Mail and porch theft still occur, which is one more way a thief can steal your personal and financial information to use in a scam. A locking mailbox is a purchase you may want to consider if you don’t have one already.
Recognizing the signs of tax-related fraud could allow you to take action and significantly suppress the repercussions. If you suspect you’ve fallen victim to fraud or believe that you’ve been tricked into giving away personal information as part of a scam, contact your local police service and make a report.
By staying proactive and vigilant, you’ll be in a better position to protect your identity and your data—and live your digital life with safety at the forefront.
To stay updated on all things McAfee and on top of the latest consumer and mobile security threats, follow @McAfee_Home on Twitter, subscribe to our email, listen to our podcast Hackable?, and ‘Like’ us on Facebook.
The post Tax Season is Here: Avoid These Common Scams Targeting Canadians appeared first on McAfee Blogs.
Elder scams cost seniors in the U.S. some $3 billion annually. And tax season adds a healthy sum to that appalling figure.
What makes seniors such a prime target for tax scams? The Federal Bureau of Investigation (FBI) states several factors. For one, elders are typically trusting and polite. Additionally, many own their own home, have some manner of savings, and enjoy the benefits of good credit—all of which make for an ideal victim profile.
Also according to the FBI, elders may be less able or willing to report being scammed because they may not know the exact way in which they were scammed, or they may feel a sense of shame over it, or even some combination of the two. Moreover, being scammed may instill fear that family members will lose confidence in their ability to look after their own affairs.
If there’s one thing that we can do for our elders, it’s help them raise their critical hackles so they can spot these scams and stop them in their tracks, particularly around tax time. With that, let’s see how crooks target elders, what those scams look and feel like, along with the things we can do to keep ourselves and our loved ones from getting stung.
The phone rings, and an assertive voice admonishes an elder for non-payment of taxes. The readout on the caller ID shows “Internal Revenue Service” or “IRS,” the person cites an IRS badge number, and the victim is told to pay now via a wire transfer or prepaid gift card. The caller even knows the last four digits of their Social Security Number (SSN). This is a scam.
The caller, and the claim of non-payment, are 100 percent bogus. Even with those last four digits of the SSN attempting to add credibility, it’s still bogus. (Chances are, those last four digits were compromised elsewhere and ended up in the hands of the thieves by way of the black market or dark web so that they could use them in scams just like these.)
Some IRS imposter scams take it a step further. Fraudsters will threaten victims with arrest, deportation, or other legal action, like a lien on funds or the suspension of a driver’s license. They’ll make repeated calls as well, sometimes with additional imposters posing as law enforcement as a means of intimidating elders into payment.
The IRS will never threaten you or someone you know in such a way.
In fact, the IRS will never call you to demand payment. Nor will the IRS ever ask you to wire funds or pay with a gift card or prepaid debit card. And if the IRS claims you do owe funds, you will be notified of your rights as a taxpayer and be given the opportunity to make an appeal. If there’s any question about making payments to the IRS, the IRS has specific guidelines as to how to make a payment properly and safely on their official website.
It’s also helpful to know what the IRS will do in the event you owe taxes. In fact, they have an entire page that spells out how to know it’s really the IRS calling or knocking at your door. It’s a quick read and a worthwhile one at that.
In all, the IRS will contact you by mail or in person. Should you get one of these calls, hang up. Then, report it. I’ll include a list of ways you can file a report at the end of the article.
Whether it’s a disembodied voice generated by a computer or a scripted message that’s been recorded by a person, robocalls provide scammers with another favorite avenue of attack. The approach is often quite like the phone scam outlined above, albeit less personalized because the attack is a canned robocall. However, robocalls allow crooks to cast a much larger net in the hopes of illegally wresting money away from victims. In effect, they can spam hundreds or thousands of people with one message in the hopes of landing a bite.
While perhaps not as personalized as other imposter scams, they can still create that innate sense of unease of being contacted by the IRS and harangue a victim into dialing a phony call center where they are further pressured into paying by wire or with a prepaid card, just like in other imposter scams. As above, your course of action here is to simply hang up and report it.
Here’s another popular attack. An elder gets an unsolicited email from what appears to be the IRS, yet isn’t. The phony email asks them to update or verify their personal or financial information for a payment or refund. The email may also contain an attachment which they are instructed to click and open. Again, all of these are scams.
Going back to what we talked about earlier, that’s not how the IRS will contact you. These are phishing attacks aimed at grifting prized personal and financial information that scammers can use to commit acts of theft or embezzlement. In the case of the attachment, it very well may contain malware that can do further harm to their device, finances, or personal information.
If you receive one of these emails, don’t open it. And certainly don’t open any attachments—which holds true for any unsolicited email you receive with an attachment.
Beyond simply knowing how to spot a possible attack, you can do several things to prevent one from happening in the first place.
First let’s start with some good, old-fashioned physical security. You may also want to look into purchasing a locking mailbox. Mail and porch theft are still prevalent, and it’s not uncommon for thieves to harvest personal and financial information by simply lifting it from your mailbox.
Another cornerstone of physical security is shredding paper correspondence that contains personal or financial information, such as bills, medical documents, bank statements and so forth. I suggest investing a few dollars on an actual paper shredder, which are typically inexpensive if you look for a home model. If you have sensitive paper documents in bulk, such as old tax records that you no longer need to save, consider calling upon a professional service that can drive up to your home and do that high volume of shredding for you.
Likewise, consider the physical security of your digital devices. Make sure you lock your smartphones, tablets, and computers with a PIN or password. Losing a device is a terrible strain enough, let alone knowing that the personal and financial information on them could end up in the hands of a crook. Also see if tracking is available on your device. That way, enabling device tracking can help you locate a lost or stolen item.
There are plenty of things you can do to protect yourself on the digital front too. Step one is installing comprehensive security software on your devices. This will safeguard you in several ways, such as email filters that will protect you from phishing attacks, features that will warn you of sketchy links and downloads, plus further protection for your identity and privacy—in addition to overall protection from viruses, malware, and other cyberattacks.
Additional features in comprehensive security software that can protect you from tax scams include:
And here’s one item that certainly bears mentioning: dispose of your old technology securely. What’s on that old hard drive of yours? That old computer may contain loads of precious personal and financial info on it. Look into the e-waste disposal options in your community. There are services that will dispose of and recycle old technology while doing it in a secure manner so the data and info on your device doesn’t see the light of day again.
As said earlier, don’t let a bad deed go unreported. The IRS offers the following avenues of communication to report scams.
In all, learning to recognize the scams that crooks aim at elders and putting some strong security measures in place can help prevent these crimes from happening to you or a loved one. Take a moment to act. It’s vital, because your personal information has a hefty price tag associated with it—both at tax time and any time.
To stay updated on all things McAfee and on top of the latest consumer and mobile security threats, follow @McAfee_Home on Twitter, subscribe to our email, listen to our podcast Hackable?, and ‘Like’ us on Facebook.
The post How to Spot, and Prevent, the Tax Scams That Target Elders appeared first on McAfee Blogs.
It’s tax time in the United States, and even if you’re pretty sure you did everything right, you’re worried. Did I file correctly? Did I claim the right deductions? Will I get audited? Unfortunately, tax season brings out scammers eager to take advantage of your anxiety.
First, know that you’re probably doing a good job with your taxes. Less than 2% of returns get audited and most discrepancies or adjustments can get handled easily if you address them promptly.
Still, wariness of the IRS and intricate tax laws makes for ripe pickings when it comes to hackers, who prey on people’s fear of audits and penalties. Common scams include fake emails, phone calls from crooks posing as IRS agents, and even robocalls that threaten jail time. With the information they get from you, hackers can take things a step further by stealing your identity and filing tax claims in your name.
As if we didn’t have enough to worry about at tax time.
The good news is that you have plenty of ways to protect yourself from hackers. Check out these tips to stay safe this tax season.
Straight from the authority itself, the IRS has published its top 12 tax season scams with new warnings brought on by the events of 2020.
For example, new to this year are scams associated with stimulus checks sent out by the government. The IRS says they have seen “… a tremendous increase in phishing schemes utilizing emails, letters, texts and links. These phishing schemes are using keywords such as “coronavirus,” “COVID-19” and “Stimulus” in various ways.”
This is very important: The IRS does not use email. If you get an email from someone saying they are the IRS and they want to talk with you about a problem, it is a scam.
Here’s what the IRS has to say:
The IRS will never initiate contact with taxpayers via email about a tax bill, refund, or Economic Impact Payments. Don’t click on links claiming to be from the IRS. Be wary of emails and websites − they may be nothing more than scams to steal personal information.
Social media attacks also made the IRS Dirty Dozen. In a social media attack, scammers harvest information from social media profiles. Hackers use the information to gain access to your online accounts in social media and beyond, like your bank account. Make it hard for them. Make your social media profiles private so that only friends and family can see them. Also consider so you can be safer from these kinds of crimes.
When a hacker poses as an IRS agent, they try to get personal information from you, like your social security number. They might demand payment, sometimes under the threat of penalties or even jail time. These strong-arm tactics are a dead giveaway that the email or phone call is fake.
What will the IRS do? Usually, the IRS will first mail a bill to any taxpayer who owes taxes. IRS collection employees might call on the phone or make an unannounced visit to your home or business. If they require a payment, the payment will always be to the U.S. Treasury. Read about other ways to know what the IRS won’t do when they contact you.
And remember: the IRS does not use email to contact you about tax problems.
A good defense is a good offense. File early. Protect yourself by filing your claim before they have a chance to file one as you. You don’t want to be one of those identity theft victims who finds out you’ve been scammed when you file your taxes only to get a notice in the mail saying your tax claim has already been filed.
Here’s other tool that can help you fight identity theft. And get this: it’s not only helpful, it’s free. Through the Federal Trade Commission, you are entitled to a free copy of your credit report from each of the three major credit reporting companies once every 12 months. In this report, you can find inaccuracies in your credit or evidence of all-out identity theft.
Keep in mind that you get one report from each of the reporting companies each year. That works out to three reports total in one year. Consider this: if you request one report from one credit reporting company every four months, you can spread you free credit report coverage across the whole year.
The idea is that, just like with your physical wellness, there are lots of steps you can take to protect your digital wellness. We’ve covered some of those steps in this blog. Consider one more: protect your digital life with a holistic security solution like McAfee Total Protection so you can enjoy life online knowing your precious data is protected. Tax time or otherwise, security software is always a smart move.
To stay updated on all things McAfee and on top of the latest consumer and mobile security threats, follow @McAfee_Home on Twitter, subscribe to our email, listen to our podcast Hackable?, and ‘Like’ us on Facebook.
The post Who loves tax season besides accountants? Hackers appeared first on McAfee Blogs.
Tax season is always a high time for scams that put our money and information at risk. But this year securing your data may be more important than ever, due to a spike in unemployment fraud.
Millions of Americans have lost their jobs over the course of the pandemic, and states have seen a surge in unemployment applications, including fake claims using stolen information. In California, authorities report that between $10 billion and $30 billion was recently paid in fraudulent unemployment claims, while in New York authorities identified $5.5 billion in fake jobless claims since March of 2020.
ictims don’t even know that their information was used for a fraudulent claim until they receive an unemployment letter from their state, or a tax form from the IRS. Whether you’re concerned about your personal data, or just want to safely file your IRS return and hopefully get a tax refund, let’s take some steps to protect your private information for this tax season, and beyond.
The first thing to know is that there are a that we see evolving each year – according to the IRS, Criminal Investigation identified $2.3 billion in tax fraud schemes just last year. So, it’s always a good idea to take caution and be skeptical whenever you see something that seems too good to be true, like a free tax filing service you’ve never heard of before.
But recently, with so many people out of work, bad actors have decided to focus their attention on filing fraudulent jobless claims using stolen information from people who were actually employed.
If you’ve received a notice about unemployment benefits that you never applied for, contact your state unemployment agency and submit a claim. Then follow up with the Federal Trade Commission since they can help you by placing a fraud alert on your credit. This lets lenders know that you may be a victim of fraud, prompting them to take extra steps to verify your identity. The good news is that in the U.S. you only have to notify one of the three national credit bureaus and they will transmit your request to the other two.
My colleague Judy has shared some easy ways you can check your credit report and even freeze your credit in a blog post here. Starting 2021, you can also register for a six-digit Identity Protection PIN (IP PIN) with the IRS to add another layer of verification to protect yourself from tax-related identity theft.
Of course, tax season isn’t the only time your data can fall into the wrong hands. Keep your personal information safe by adopting these best practices and robust tools.
• Use comprehensive security software—For protection against the growing range of threats, choose holistic security software that goes beyond traditional antivirus products, by protecting your identity and privacy wherever and however you connect.
Stay Updated
To stay updated on all things McAfee and on top of the latest consumer and mobile security threats, follow @McAfee_Home on Twitter, subscribe to our email, listen to our podcast Hackable?, and ‘Like’ us on Facebook.
The post Don’t Let Tax Fraud Ruin Your IRS Refund appeared first on McAfee Blogs.
FreshRSS 