The old adage about the only inevitable things are death and taxes should have added “tax scams” to the list. Wherever there is money, there are bound to be dishonest players looking for ways to profit from it. The same is true of taxes.
There are many ways of reaching people through technology and a variety of tax scams. Scammers impersonating the IRS may threaten an audit or warn a person that they owe money in taxes.
A fake tax preparer can pretend to offer services in exchange for data or
they could phish for data to steal tax returns. Along with crypto scams and forex trading scams, tax scams are increasing in number and frequency.
Those who fall victim to tax scams may feel helpless. It is important to know that there are always solutions for trying to track down the scammers and for fund recovery. Broker Dispute professionals have the training and the technology to find tax scammers and help their clients retrieve their funds and stop identity theft in its tracks.
Broker Dispute experts have extensive experience combating tax scams and drafting intelligence reports. We work closely with regulators, law enforcement, and government organizations. We guide consumers and help clients who have been targeted by hacking and may need fund recovery. Talk to our professionals today.
Types of Tax Scams
There are several kinds of tax scams but their methods of operation are quite similar. They are almost always impersonating an organization or a company, such as the IRS or a tax preparation service. They tend to reach people through cold communication, such as telephone calls, spam emails, and texts.
They have often obtained the person’s contact information illegally, perhaps purchasing it from another fraudster. They are after either money, data, or both. Some tax scam artists go on to commit full identity theft and pretend to be the other person in order to use their bank account or receive their tax refund checks and other benefits.
To stay safe from this pernicious cybercrime, it is essential to get to know the various types of tax scams and to avoid falling victim to them.
People may contact you and offer to prepare your taxes. There is nothing wrong with this, because there are many tax preparation services, but it is important to investigate any service carefully before giving them any of your information. The following are some red flags that the tax service may be fake:
- No license
- Extravagant promises to find lots of loopholes
- Cold calling, direct messaging on social media
- Pressures would-be clients to sign up fast
- Asks for an upfront fee
- Demands personal information immediately
Any financial service provides must have a license. If they do not, it is not worth communicating with them much less working with them. Check to ensure they have a secure website and examine that their license is up to date.
Be careful of big promises and guarantees to save thousands in taxes. Also, the fake accountant may be putting significant time pressure to get the victim to agree quickly to the terms and conditions. All accountants ask for personal information, but if they demand your social security information, photo ID, and bank data right away as well as an upfront fee, that may be a red flag.
False Threats from IRS Imposters
We may all dread getting a message from the IRS that we owe money or that we are going to be audited. However, investigate all communications that purport to be from the government before clicking on any links or sending money. Scammers have become adept at making messages look like official communication.
If you receive such a message that is supposedly from the IRS, consider the following:
- Does the communication have very threatening language?
- Are there spelling and grammatical errors?
- Do you have evidence that you do not owe this money to the IRS?
- The URLs in the links are not accurate
- You are told immediately to give your social security number (presumably the IRS would already have this)
When you receive what seems to be an urgent message from the IRS, it is a good idea to contact the IRS independently and ask them if they have sent you such a notice. Avoid clicking on any links in the email or giving over any personal information until you have confirmed that you have indeed been contacted by the IRS and not a scammer.
Tax Return Thieves
Some tax scams center around stealing a tax return or benefits from someone. You may receive an email or a text that is supposedly from the IRS telling you that you need to submit personal information, such as your social security number and photo ID to get your tax return or benefits. The scammer will then phish this information and claim it for themselves.
Again, as with the IRS notice about the money owed, contact the IRS directly and see what is required. Work only through their secured website and never through other communication. This is the best method for staying safe from tax scams.
In spite of all of these precautions, you still may at some point be the target of a tax scam. If this occurs, contact Broker Dispute professionals right away. We are adept at dealing with tax scams as well as forex broker scams and crypto scams. You will improve the likelihood of fund recovery if you work with experts who can track down all kinds of fraud, including tax scams.
Are You the Target of a tax scam? Talk to Broker Dispute Experts
If you are a victim of a tax scam, speak to Broker Dispute experts. We provide clients with solutions and can help them file a claim, track down the scammers, and work towards fund recovery. Our professionals know how to get results for our customers with our connections and experience with law enforcement and government organizations. Consult with us and we will take care of the rest.