As the year draws to a close, many people are thinking about the new year, debts they are trying to manage, and the upcoming chore of filing their income tax return. Some will look forward with anxious anticipation of a refund while others will dread making a tax payment. Traditional and legitimate ways to save on taxes are not within reach of most taxpayers which makes them vulnerable to scams promising either a lower tax bill, a higher refund check, or both!

Tax season creates opportunities, not just for filers, but also for criminals looking to exploit stolen personal information. Tax identity fraud occurs when someone uses your stolen personal information to file a fraudulent return or claim refunds in your name, often before you realize anything is wrong. Understanding how this crime happens and taking proactive steps to safeguard your information can help your account holders avoid costly delays, stress, and long-term consequences.

Tax Season Is Also Theft Season

Tax-related identity theft occurs when someone uses your stolen personal information, including your Social Security Number, to file a tax return claiming your refund. According to the IRS, reversing the damage caused by tax-related identity theft can be a frustrating and complex process for victims. In addition, scammers will use tax season as an opportunity to commit fraud, pretending to be the IRS and asking consumers for cash or asking consumers to convert cash to gift cards, which is an easy way to transmit cash without the possibility of detection when the card is used. Safeguarding your identity is critical year-round but especially important as we enter the busy tax season.

As an account holder with an <EMBEDDED_ACCOUNT> account, you have identity fraud remediation professionals standing by to help restore your identity. While we provide peace of mind and resolution if a theft occurs, it's also important to help protect yourself and prevent instances of tax-related crimes. Give yourself a fighting chance and learn how you can avoid the devastating effects of tax-related identity theft.

According to the Federal Trade Commission (FTC) and Internal Revenue Service (IRS), some examples of scams this tax season are:

Robocalls - Scammers use computers to dial thousands of phone numbers, pretending they’re calling from the IRS, hoping to find victims who respond to their threatening statements. These criminals claim you owe taxes and demand that you pay immediately, usually with a gift card or prepaid debit card. The IRS does not initiate contact with taxpayers via phone.

IRS Imposters - These are the scammers who send out emails, pretending they are from the IRS. The imposters may use part of your real identity to convince you that their claim is valid. They will tell you that you owe taxes and demand that you pay up or face prosecution. Or they will ask you to verify that you have paid your taxes, asking for personal information and bank account numbers to obtain data that can be used later to commit identity theft. The IRS does not initiate contact with taxpayers by email to request personal or financial information. This includes any type of electronic communication, such as text messages and social media channels.

Refund Thieves - Criminals will gather or purchase your stolen personal information, create a bogus tax return, and file the return with the IRS, claiming your refund. When you then file your legitimate return by mail, the IRS will send you a notice or letter saying that more than one return was filed for you. If you try to e-file, the IRS will reject your tax return as a duplicate filing. In either case, you are left with the difficult task of convincing the IRS that it wasn’t you that filed the return and received the refund the first time.

If tax fraud or any other identity theft strikes, you are not alone. <FINANCIAL_INSTITUTION> has you covered. A personal Identity Recovery Advocate is standing by to research and resolve any identity theft issue that you may suspect or evidence of identity fraud that you discover. Call us or contact your Identity Recovery Advocate if you see any suspicious activity.