Avoiding Tax Scams: How to Protect Your Finances This Season

(3 Minute Read) — Tax season is a prime time for fraudsters to target individuals with scams designed to steal personal information and money. At Unitus Community Credit Union, we prioritize your financial security. Knowing how to recognize and avoid these scams can help you stay safe. Here’s what you need to watch out for and how to protect yourself.

Common Tax Scams to Watch For

Tax scams come in many forms, and criminals are always finding new ways to trick taxpayers into revealing sensitive information. These scams often rely on fear tactics, impersonation, and deception to manipulate victims into giving up their personal or financial details. Understanding the most common types of tax fraud can help you stay one step ahead and protect your hard-earned money.

1. Phony IRS Calls and Emails

Scammers often impersonate the IRS, claiming you owe back taxes or face legal consequences. They may call, email, or even send fake letters demanding payment. The IRS will never call you unexpectedly or demand immediate payment via gift cards, wire transfers, or cryptocurrency.

2. Fake Tax Preparers

Be cautious when choosing a tax preparer. Some fraudsters pose as professionals to steal your Social Security number (SSN) and personal details. Always verify credentials and use reputable tax preparers with IRS Preparer Tax Identification Numbers (PTINs).

3. Tax Refund and Identity Theft

Identity thieves use stolen SSNs to file fraudulent tax returns and claim refunds. If you receive an IRS notice about a duplicate return or a refund you didn’t request, your identity may have been compromised.

4. Fake Unclaimed Refund Scams

Scammers send emails or messages claiming you have an unclaimed tax refund and request personal details to process it. The IRS does not send unsolicited messages about refunds—verify all claims directly at IRS.gov.

How to Protect Yourself

Tax scams come in many forms, and criminals are always finding new ways to trick taxpayers into revealing sensitive information. These scams often rely on fear tactics, impersonation, and deception to manipulate victims into giving up their personal or financial details. Understanding the most common types of tax fraud can help you stay one step ahead and protect your hard-earned money.

• Stay Skeptical of Unsolicited Communications
  If you receive a suspicious call or email, do not engage. Hang up or delete the message. The IRS typically contacts taxpayers by mail first, not through aggressive phone calls or emails.

• Guard Your Personal Information
  Never share your SSN, banking details, or other sensitive information with unverified sources. File your taxes early to reduce the risk of identity theft.

• Verify Your Tax Preparer
  Check the credentials of tax professionals before sharing your financial details. The IRS provides a directory of verified preparers at IRS.gov.

• Use Secure Online Practices
  When filing taxes online, ensure you use encrypted websites and strong passwords. Be wary of emails with links asking for login credentials.

What to Do If You Suspect Fraud

If you believe you are a victim of a tax scam:

• Report it to the IRS at phishing@irs.gov or IRS Identity Theft Hotline (800-908-4490).
• Contact us immediately
• Monitor your accounts in Digital Banking and set up custom alerts and notifications.

At Unitus Community Credit Union, we’re committed to keeping your financial information safe. Stay vigilant this tax season and reach out to us if you have any concerns about fraud prevention.