Protect yourself and your tax refund from scams
Tax season is upon us, and while many of you are preparing to file your returns, it’s crucial to be aware of the ever-evolving world of tax scams. This year, it’s more important than ever to stay informed and on your guard. New research by McAfee, a cybersecurity company, has shed light on how common these scams are and what kind of scams they are, revealing some surprising trends and highlighting the importance of protecting yourself.
According to the research, a little more than half of Americans (53%) are e-filers, taking the online route through tax software or IRS Free File. Nearly a third (31%) rely on professional tax preparers, while the vast majority (60%) handle payments and refunds electronically. However, a large portion (52%) still receive their W-2s and 1099s in the mail, while others (31%) log in to payroll service portals to retrieve them.
The unsettling reality of tax scams becomes apparent when we look at the statistics. Nearly one in four individuals (23%) say they know someone or have personally fallen victim to such scams. Surprisingly, young adults aged 18-24 are the most likely to fall victim to scams, with older adults aged 65-74 being the least likely. Gender differences also play a role, with young men being significantly more likely to lose money to scams than young women.
Scammers use a variety of tactics to trick people into giving up their money or personal information. Phone calls, text messages, and social media messages claiming to be from the IRS or state tax authorities are common, with demands for social security numbers, immediate payment of back taxes, and bank account information being prevalent. It’s crucial to note that the IRS generally doesn’t initiate contact via phone, text, or social media to demand immediate payment.
Different age groups are targeted with different scams, with older adults being heavily targeted by payment scams, middle-aged adults targeted by a mix of identity theft and payment scams, and younger adults targeted for personal information like birth dates and bank account numbers.
Protecting yourself from tax scams is essential. Be skeptical of unsolicited contact, avoid clicking suspicious links, guard your personal information, create strong passwords, enable two-factor authentication, invest in personal data removal services, don’t respond to texts/calls from unknown sources, and trust your gut. By taking these simple steps, you can confidently navigate the tax landscape and avoid falling victim to these scams.
Tax season doesn’t have to be a stressful time filled with worry. By staying informed, being on your guard, and taking simple steps to protect yourself, you can confidently navigate the tax landscape and avoid falling victim to these scams. Be skeptical, be careful, and always remember that when it comes to your taxes, it’s always better to be safe than sorry.
