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How to Spot Tax Scams

  • Overview

    How to Spot Tax Scams

    The world of tax scams is constantly changing. Scammers try new tactics to mislead and exploit victims every year. Still, each fraud has the same goal—taking money from you or personal information that can be used to steal your identity.

    Here are some of the most common scams below:

    • Phone scams (impersonating IRS agents): Scammers use fake numbers to pose as IRS agents, demanding immediate payment for made-up tax debts and threatening legal action if not complied with.
    • Phishing emails and fake websites: These scams involve spoofed emails or websites designed to steal personal information, such as Social Security numbers, addresses, bank account details, and credit card numbers.
    • Social media scams: Scammers use social media to spread misinformation and lure victims into providing sensitive information.
    • SMS phishing (smishing): Like phishing emails, smishing involves fraudulent text messages attempting to steal personal information. Ignore and block these messages.
    • Refund scams: Scammers promise high-tax refunds or claim to fasten the refund process in exchange for upfront fees or personal information.

    Victims of a tax scam will have unfortunate consequences, including financial loss, identity theft, and high stress. Scammers will use stolen information to commit fraud or sell it. Additionally, victims may face legal and financial struggles from the scam. Knowing what you’re up against is essential to avoid at all costs.

    Related Topics

    • 5 Ways to Make Your Tax Refund Work For You
    • Tax Season Survival Guide

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