Don’t let scammers claim your refund.

Tax season is upon us, and so are identity theft schemes and other forms of fraud that threaten the tax and financial information of taxpayers, businesses, and tax professionals. The IRS’s annual list of “Dirty Dozen” tax scams highlights what to look out for:

1. IRS impersonation by email and text (phishing and smishing). Look out for IRS impersonators who create fake weblinks, QR codes, spoofed websites, and alarming text messages to try to direct taxpayers to “verify” accounts or credentials. Don’t click links or open attachments from unexpected messages and report suspicious IRS-related emails, DMs, and texts.
2. Phone scams (vishing). Evolving AI allows scammers to spoof caller ID and even generate AI-related responses to answer complex tax questions to trick you into sharing your personal information. Remember, the IRS generally contacts you by mail first and doesn’t leave urgent or threatening messages demanding payment or threatening arrest. Block or report suspicious callers.
3. Identity theft. Fraudsters may attempt to pose as a tax professional in hopes of gaining your personal information to access your IRS online account or steal your refund. Do not share your personal information with unverified sources. Shred sensitive documents securely to stop them from falling into the wrong hands.
4. “Ghost” tax preparers. When a preparer refuses to sign or provide a Preparer Tax Identification Number (PTIN), it is a major red flag. Fraudsters may pose as tax professionals but refuse to sign off on the return, promising a large refund, falsifying information, or even depositing your refund in their own account.
5. Misleading tax advice on social media. Look out for misinformation pushed online in the form of viral “tax hacks” that urge you to file returns using false information or claiming credits you don’t qualify for, leading to refund delays, audits, or penalties. Seek out reputable sources like the IRS or trusted tax professionals and don’t give into viral trends.
6. Unexpected tax refunds or notices from the IRS. If you receive a refund you didn’t expect, this could mean that someone may have filed a return in your name.
7. Unexpected changes to your account information. Monitor your accounts regularly to spot unauthorized changes to your information in your IRS account or bank accounts. Bank Account Takeover happens when a fraudster deposits a stolen refund into your bank account and demands payment via gift cards or wire transfers.

Identifying tax scams.

Scammers use many different techniques, but knowing this about the IRS can help you identify a potential scam:

• The IRS won’t call, text, or reach out to you on social media.
• They will never ask you to provide a credit or debit card number over the phone.
• They do not accept gift cards, prepaid debit cards, Venmo, or Zelle as forms of payment.
• They will NEVER threaten you with arrest or deportation if you don’t pay immediately.

TruNorth Bank is looking out for you.

We’re committed to keeping you informed about the latest scams and ways to protect your money and personal information. For more information and valuable tools to help you stay safe, visit our fraud prevention webpage, stop by your nearest office, or call Customer Care at 978.573.1300.