Tax season can be a prime time for scammers to take advantage of unsuspecting individuals. To avoid becoming a victim, it's crucial to be vigilant and take proactive steps to protect yourself.
Some common tax time scams to be on the lookout for include: - Be suspicious of unsolicited calls, emails, or texts claiming to be from the IRS. The IRS will never contact you in this manner to demand immediate payment, so it's important to verify the legitimacy of any communication before providing any personal information. These text or emails may may contain malware to steal information from your device, disable it, or hijack your device.
- Watch for fake tax prep services. These may charge high fees and file incorrect returns to get larger refunds. To avoid this, only use reputable tax preparers and be suspicious of anyone promising unusually large refunds or trying to charge high upfront fees. Legitimate tax preparers won't ask you to sign blank returns.
- Be vigilant about protecting your Social Security number and other private information. Identity thieves use stolen personal data to file fraudulent returns and claim refunds. It's important to monitor your financial accounts and credit reports closely, looking at any unfamiliar charges or suspicious activity and reporting it immediately to your financial institution. Review your tax return carefully before filing to ensure all the information is accurate. If getting a refund that is deposited into your bank account, double check that the routing and account information is accurate.
To protect yourself, never respond to unsolicited contacts, use only trusted tax preparers, monitor your accounts, and file your taxes early to beat scammers to the punch. Also remember, one of the most common tactics bad actors uses is to create a false sense of urgency or fear. If you encounter such a circumstance, resist the urge to do something immediately:
- Slow down and evaluate the situation. Scammers rely on you being caught off guard.
- Independently verify the information by using a trusted number or website.
- Report the incident to appropriate authorities.
- Legitimate organizations will not demand immediate action.
MMFCU has tools to assist you in monitoring your accounts:
- Monitor your credit report and more
- Dispute charges directly in Online Banking
- Set up notification alerts and controls for transactions with in your accounts
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