How to Avoid the Tax Return Scam

Tax return season is usually a source of anxiety for many taxpayers. It's when most of us delve into numbers and forms to fulfill our annual obligation to the government. 

Unfortunately, this time of year is a feast for cybercriminals! They are quick to take advantage of the concern and lack of information to ensnare their victims. 

In this article, we'll be looking at the tax return scam and how you can protect yourself from possible fraud.

The tax return scam: how it works

Scammers are always on the lookout for opportunities to create scams that are as realistic as possible. In the case of the tax return scam, some of the most commonly used methods are:

1. Phishing emails and messages: you may receive an email or message that appears to be from an official institution like the IRS. Usually, the criminal poses as a federal agent and requests personal information, like document numbers or bank account details. They may claim that they need this information to correct errors on your tax return, to check whether your return is mandatory, and so on.

2. Fraudulent calls: scammers may call you and pose as government agents. Just as with email, they may ask for personal information, claim some error with your tax return, or even allege that you could face penalties if you don't provide your details or pay a fee to supposedly complete the return.

3. Fake apps and websites: criminals can create pages or apps that simulate official government programs, often appearing almost identical. When victims access these sites or download fake apps, criminals are able to capture personal and financial information or contaminate the victim’s device with malware.

4. Fake accountants: some scammers pose as accountants and financial professionals and offer their services at low prices. Once you’ve shared your details and made payment, the scammers disappear. They can then use your data to commit other crimes, too.

Avoiding the Tax Return Scam

Fortunately, there are ways to protect yourself against these scams and ensure that your tax return is a safe process!

1. Stay informed: Try to find out more about how the tax return process works and which agencies are responsible. That way, if someone tries to trick you with false information, you'll realize that something is wrong.

2. Don't provide personal information by phone or e-mail: Official tax institutions never contact taxpayers by e-mail or phone requesting personal information. If you receive a call or email asking for your details, be wary. Always check the veracity of the information on official channels, such as the IRS website or those of other affiliated agencies.

3. Choose reliable professionals: If you decide to use an outsourced service for your tax return, make sure you choose a qualified company or professional, recognized by other clients. Don't forget to review the reputation of this company or professional on search engines.

4. Be wary of offers that seem too good to be true: If an offer seems too good to be true, it's probably a trap. Be wary of promises of large tax refunds or extremely cheap tax return services.

5.  Report possible scams: If you suspect a scam, report it to the authorities. This can help prevent other people from falling victim. Also, report fake profiles or suspicious ads on social networks.

Conclusion

The tax return period, which usually tends to be stressful, can become a real problem if you fall victim to cybercrime. The good news is that, with knowledge and caution, you can avoid fraud!