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Understanding Tax Refund Scams
Tax season is a peak time for scammers seeking to exploit unsuspecting taxpayers. The Federal Trade Commission (FTC) warns that emails or texts claiming to be about your “tax refund” are red flags. These phishing scams aim to gather personal data or steal identities.
The FTC reported on January 22 that these scams typically begin with a text or email appearing to come from the IRS or local tax authorities. These messages may claim that your tax refund claim has been “processed” or “approved,” urging you to click a link. This link ultimately requests sensitive information, including your Social Security number and bank account details.
Identifying the Signs of a Scam
It’s essential to recognize that the IRS does not rush or create a sense of urgency, according to Chris Simpson, director of the National University’s Center of Cybersecurity. “For outstanding payments or any issues concerning your return, the IRS will notify you through standard mail. You’ll receive adequate time to respond,” he explained.
This characteristic of IRS communication helps in spotting scams. Any unsolicited contact that pressures you—whether via email, text, social media, or phone call—is likely not legitimate. Key warning signs include:
- Promises of substantial refunds or special credits
- Unsolicited notifications concerning unclaimed refunds
- Requests for payment via gift cards
- Urgent calls to action
Protecting Yourself from Tax Scams
Cybercriminals often take advantage of the tax season to target naive taxpayers. To safeguard yourself, consider obtaining an IRS Identity Protection PIN (IP PIN), a six-digit number that prevents unauthorized filings and is accessible to all taxpayers on the IRS website.
It’s vital to verify any communications through official channels. Always hover over links before clicking to confirm their destination. Additionally, ensure that any links lead to legitimate government websites that end in “.gov.”
