How do tax refund scams work?

How do tax refund scams work?

Tax refund scams are a type of financial fraud where criminals impersonate IRS agents or other government representatives and attempt to trick you into sending them personal information or giving them access to your tax refund. Tax scams are lucrative for scammers because few of us have experience dealing with the IRS.

Can you get scammed on your taxes?

There are two common types of scams: Tax collection – You receive a phone call or letter, claiming that you owe taxes. They will demand that you pay the amount immediately, usually with a prepaid debit card or wire transfer. They may even threaten to arrest you if you don’t pay.

What are IRS scams?

IRS scams involve criminals impersonating IRS agents, other government employees or debt collectors over the phone, online or via the mail in an effort to trick you into sending them money for taxes, penalties or fees you don’t actually owe. People lose millions of dollars a year due to IRS scams. Don’t be one of them.

How can I tell if a refund check is real?

All U.S. Treasury checks are printed on watermarked paper. When held up to the light, the watermark reads “U.S. Treasury” from both the front and the back. Any check should be suspected as counterfeit if the check has no watermark, or the watermark is visible without holding the check up to light.

What is a tax refund scam?

Tax refund scams are a type of financial fraud where criminals impersonate IRS agents or other government representatives and attempt to trick you into sending them personal information or giving them access to your tax refund. Tax scams are lucrative for scammers because few of us have experience dealing with the IRS.

Why are there so many tax scams this year?

Tax season is a ripe time for scammers to send fake emails and set up websites designed to look like the IRS or a reputable tax preparation company like H&R Block. These phishing emails and websites are designed to steal personal data. Phishing attacks can take several forms.

Is there a new IRS impersonation scam email campaign?

The IRS reminds taxpayers that criminals and scammers try to take advantage of the generosity of taxpayers who want to help victims of major disasters. The IRS and its Security Summit partners today warned taxpayers and tax professionals about a new IRS impersonation scam campaign spreading nationally on email.

What are the Dirty Dozen tax scams?

Each year, the IRS publishes its annual list of tax scams called the Dirty Dozen. These grifts are wide-ranging and involve more than tax preparer fraud. In fact, many are tax-related versions of common schemes you’ve seen before. 1. Phishing