There’s less than a week left until the tax deadline. McAfee has released new tax season data to help you stay safe this tax season.
Tax return fraud is on the rise, and rushing to pay your taxes before the deadline may make you more susceptible to them.
So how do you balance making sure you protect yourself from the various tax scams out there while also using tax preparation software to help you pay your taxes on time?
Steve Grobman, senior vice president and chief technology officer at cybersecurity company McAfee, advises that filing your taxes on time is an important step in avoiding tax fraud.
A woman feels stressed while paying taxes (Kurt “Cyber Guy” Knutson)
What are the most common tax frauds?
Tax fraud has become more sophisticated over the years, but it is by no means new. But as AI becomes more commonplace, fraudsters can leverage this technology to speed up malicious fraud. These scams come in many different forms, but the most common ones are:
Phone scam: Scammers impersonate IRS employee They demand refunds or personal information over the phone and use threats of arrest and fines to pressure immediate compliance. Robocalls may be enhanced with fake badge numbers, caller ID, or AI voiceovers.
Phishing email scam: Scammers commit fraud by sending emails and messages that pretend to be from tax authorities or reputable tax software companies. These lure recipients to click on links that lead to fake her websites designed to steal personal and financial information or directly request sensitive data under the guise of tax returns or refunds. To do.
Tax-related identity theft: This occurs when identity thieves use stolen personal information to file fraudulent tax returns. Signs of such theft include receiving a letter from the IRS regarding a tax return that was already filed in your name, or not being able to e-file because the return was already filed using your Social Security number. Contains a notice of denial or creation of a new online IRS account. You didn’t start it.
The word SCAM surrounding data (Kurt “Cyber Guy” Knutson)
Read more: Don’t fall for sneaky tax scams that steal your identity and money
What you need to know about tax reporting software
Today’s tax environment is dominated by online engagement, with nearly nine in 10 (89%) individuals using online platforms for at least part of their tax filing process. More than half of consumers (54%) have trouble distinguishing between fraudulent and legitimate messages. Cybersecurity firm McAfee blocked more than 1 million attempts by him to access malicious tax-related URLs in February alone.
Steve says, “With tax day less than a week away, early filers are waiting for their refunds, and tax procrastinators may be feeling deadline pressure and stress. Scammers are using these high-flying They use emotions to make offers like this: Easy application, faster refund or urgent information requestSo it’s no surprise that Americans report losing an average of $8,199 per person to tax-related email and text message scams. ”
“We urge the public to maintain a healthy dose of skepticism, pause before sharing sensitive information online, and use the appropriate tools to protect privacy, identity, and personal information during tax season and beyond. I encourage that.”
fraud written on tablet (Kurt “Cyber Guy” Knutson)
What fraud attempts and detection look like in different states
According to Steve, “Our recent tax fraud research reveals striking disparities in fraud susceptibility. Residents of some states, particularly Texas, New York, California, Alaska, and Arkansas, are more likely than others to They are much more likely to receive fraudulent tax refund messages.”
“These messages often contain malicious links and malware, making them more vulnerable to scams. That’s why we urge people to be extra vigilant and protect themselves from potential scams. We recommend using AI-powered online identity and information protection measures.”
Detailed information by state is below.
texas: Texas has a high rate of confidence in detecting tax-related fraud. (66%) People who lost money Examples such as online tax fraud demonstrate the gap between trust and reality.
new york: New Yorkers are confident in identifying tax-related fraud, but 70% have received a message purporting to be from the tax authority. 80% A request for personal information has been received, indicating a serious problem with fraudulent activity.
Must-know tax season tips for families with college students
west virginia: West Virginia has a high degree of confidence in identifying fake tax preparation services; 88% residents are more likely to click on a link that appears to be from a tax software company, indicating vulnerability to fraud.
Kansas: Even though you’re less likely to click on a link that claims to be from a tax preparation software company, the rate is relatively high in Kansas (88%) are often unaware of fraudulent messages from the IRS or state tax authorities, indicating the need for tax fraud awareness and education.
tennessee: 100% The percentage of respondents in Tennessee who clicked on links purporting to be from tax software companies lost money, and all respondents who received messages about tax refunds clicked on those links, indicating that Vulnerabilities are highlighted.
woman preparing taxes (Kurt “Cyber Guy” Knutson)
Read more: How scammers use AI tools to file perfect-looking tax returns in your name
How to protect yourself from tax-related identity theft
There are several ways to protect yourself from tax-related identity theft.
Smart choice: Use tax software to complete your taxes faster and on time. But be sure to do your research and check the reviews.
IRS impersonation warning: The IRS will never call you and ask you to make any payments over the phone.
Protect your identity: Request ID protection PIN From the I.R.S. This will ensure your account is protected in the future and reduce the likelihood that someone will file a fake tax return in your name.
Benefits of early purchase: From now on, try to file your taxes as soon as possible. By doing this, you are essentially defeating the scammer. Once you file a return, you can no longer commit fraud by filing a return in your name.
Beware of phishing: Even if you know the name of the tax software company, don’t click on suspicious links. The best way to protect yourself from clicking on malicious links that install malware that can access your personal information is to antivirus protection Installed on all devices.
This can also alert you to phishing emails and ransomware scams. Get my picks for the best antivirus protection products of 2024 for Windows, Mac, Android, and iOS devices.
Steve adds, “The rise of AI-powered tax fraud is making it extremely difficult for Americans to distinguish between real and fake communications. Cybercriminals are now easily malicious robocall It seems like you can send error-free texts and email messages that come from your neighbors. ”
”One in four Americans loses money to online tax fraud; It’s important for consumers to stay informed about the latest scams, exercise skepticism when things don’t seem to be true, and use AI-powered tools to protect their privacy, identity, and personal information. is. ”
More information: Top ways to protect your Social Security number
What should I do if I become a victim of tax fraud?
By being aware of the various tax scams out there, you can hopefully reduce your chances of becoming a victim, especially when the tax return deadline is fast approaching. That being said, we know that these scammers are quite sophisticated. So, if you find yourself a victim of a scam, follow these steps:
1. Complete IRS Form 14039, Identity Theft Affidavit. This is a form that all victims of fraud must fill out with the IRS. You will be letting the other person know that the person claiming to be you is a scammer. The form is located at: IRS website.
2. Request a copy of your fraudulent tax return from the IRS. You can do this by going to This page on the IRS website About handling fraudulent returns and following the instructions for ordering a copy.
3. Alert national credit bureaus. Report the fraud to a national agency like Experian, Equifax, or TransUnion and freeze your account to prevent scammers from gaining access.
4. Report the crime to the Federal Trade Commission. The FTC is here to help track down scammers. The report will also help the FTC record the number of frauds that occur in a given year and improve how it alerts others.You must also report the crime identitytheft.gov/.
5. Verify your online bank account. Make sure there are no suspicious transactions in any of your accounts.
6. Use identity theft protection services. As tax season approaches, the risk of tax fraud increases significantly. It is important to be vigilant and proactive in protecting your personal information. One effective measure is to enlist the help of an identity theft protection service.
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Identity theft companies monitor your personal information, such as your social security number, phone number, and email address, and alert you if it is sold on the dark web or used to open an account. It can also help freeze bank and credit card accounts to prevent further misuse by criminals.
One of the best things about using an identity theft protection service is that it may include identity theft insurance. Up to $1 million to cover losses and legal costs And our excellent fraud resolution team US-based case manager helps you recover your losses. Check out our tips and recommendations on how to protect yourself from identity theft..
Post-it notes attached to tax documents (Kurt “Cyber Guy” Knutson)
Details: Don’t click that link.How to identify and prevent phishing attacks in your inbox
Cart important points
Taxes are a necessary evil and must be done every year. It can be complex, which is why many people rely on software to get the job done. Whatever route you choose, be on the lookout for suspicious links from these software companies, as well as strange messages or calls claiming to be from the IRS, and request your IRS ID Protection PIN as soon as possible. please.
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