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Avoiding fraudsters while filing taxes

Each year, many of the same scams are reported to Better Business Bureau, often with a little different twist.

GOLDEN VALLEY, Minn. — Tax filing season is well underway, and con artists are out there trying to beat you to your tax return.

Each year, many of the same scams are reported to Better Business Bureau, often with a little different twist. The main theme BBB sees with these scams are that they involve someone posing as the Internal Revenue Service and they pressure you into paying up past tax debts and/or giving them your personal information.

Scam #1 – Suspicious Phone Calls

How it works:

Someone calls you claiming to be with the IRS and says you owe money in back taxes and pressures you into paying by prepaid debit card or wire transfer. If you don’t comply, the scammer threatens you by saying you’ll be arrested and have to pay fines. The caller ID may even back up the claim that they are with a government agency. They use fake names and bogus IRS identification badge numbers.  

If you don’t pick up, they will leave an “urgent” message for you to call them back – do not call them back.

Scam #2 – Fraudulent Emails

How it works:

Again, someone claiming to be with the IRS sends you an official looking email to trick you into revealing personal and financial information that can be used to steal your identity. Sometimes these emails will contain malware – so once you open them and click on any documents, the malware attacks your computer and thieves can access your files or track your keystrokes to get your personal information. 

Biggest red flags that you’re dealing with a scammer:

The IRS will never call or email you – they communicate mostly by mail.

In the rare times they do call you, they will have already tried contacting you via mail

If they do call you, they’re not going to ask you for personal information or demand payment information

Tips:

File your return early, that way thieves don’t have as much of chance to get your information and file your return for you and get your money.

If you file electronically - use a secure internet connection and don’t do it while on public WiFi.  

Hackers can intercept your signal by using a phony hotspot – so basically instead of you being directly connect to the hotspot – they can make it so your information goes through them first and they push it on to the hotspot.

If you’re going to a tax preparer – check out their profile at bbb.org to make sure they are a trustworthy business

Check your credit report every 12 months – you can do it free once a year at annualcreditreport.com

This can help you spot early signs of ID theft, are there accounts you didn’t open?

If you do fall victim to a tax related scam, contact the IRS immediately. We also highly encourage you to file a report on BBB’s Scam Tracker.


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