“Tax scams affect every demographic with younger people reporting the most fraud as a result of these scams.”

Every year during tax season, cybercriminals work hard to exploit Americans with “realistic” tax scams. Last year, over $2 billion of tax fraud was identified by the IRS. This year, due to the global pandemic, those numbers could be even higher because more people will file their taxes electronically for the first time. Tax scams affect every demographic with younger people reporting the most fraud as a result of these scams.

Here are three ways to avoid being the victim of a tax scam this year.

Be wary of suspicious emails, calls, or text messages

Cybercriminals will create phishing emails to imitate tax companies and send mass emails to access sensitive information. If you receive an email from a sender you don’t recognize, proceed forward with caution.

NEVER click on an unknown link or open an attachment from an unknown source. Think before you click! The IRS will not proactively contact you via phone or text message. If you receive a call or a text message from someone claiming to work for the IRS, assume it’s a scam.

Protect your information

File your taxes early so cybercriminals have less time to use your personal information to submit a fake tax return. If you can’t file your taxes because of a duplicate social security number, your personal information may be compromised. If your personal information is compromised, you should complete and submit an Identity Theft Affidavit form to the IRS.

Additional indicators that your information is compromised include:

  • Receiving a letter from the IRS about a tax return you did not file
  • Receiving a tax transcript you did not request
  • Receiving an IRS notice about an online account in your name that you did not create
  • IRS records indicate income from an employer you are not affiliated with

Only file taxes with known and trusted sources

Cybercriminals will use fake websites to steal sensitive information. These websites will imitate well-known tax companies and tax filing tools. One way to spot fake websites is to closely pay attention to the URL in the browser, e.g., check if the URL has misspellings or domains other than .com or .gov.

If you’re using a tax professional to file your taxes, do your research on that person or company before providing them with tax documents that include your sensitive information.