January scams spike as criminals target tax data and personal information

Summary:

January sees a surge in tax-related scams as fraudsters impersonate government agencies like the IRS, tax preparers, or financial institutions. Criminals exploit the urgency around tax deadlines, refund anticipation, and W-2/1099 form distribution to steal Social Security numbers, bank details, and login credentials. Common triggers include phishing emails with fake tax documents, threatening robocalls about “overdue taxes,” and fraudulent identity verification requests. Increased post-holiday financial strain also makes victims more susceptible to “quick refund” schemes.

What This Means for You:

• Impact: Stolen tax data can lead to identity theft, fraudulent refund claims in your name, or drained bank accounts.
• Fix: Forward suspicious IRS-themed emails to phishing@irs.gov and report calls to Treasury Inspector General (TIGTA).
• Security: File taxes early to reduce fraud window and use IRS Identity Protection PINs.
• Warning: The IRS never initiates contact via email, text, or social media demanding immediate payment.

Solutions:

Solution 1: Use IRS Free File with Multi-Factor Authentication

File taxes through IRS-approved platforms like Free File (for incomes ≤$79k) or commercial partners (TurboTax, H&R Block). Enable multi-factor authentication (MFA) on all accounts. IRS-supported software blocks phishing links and encrypts submissions.

Strong Password Command: Use a password manager to generate/store complex phrases: openssl rand -base64 16 (terminal) creates a 16-character secure password.

Solution 2: Verify Suspicious Communications

Scammers mimic legitimate IRS notices (e.g., CP2000). Authentic letters have a notice number (upper right corner) and instructions for response at IRS.gov (never third-party links). Cross-check any unexpected contact via the official IRS hotline: 800-829-1040.

Check IRS Account: Log into your IRS.gov account to confirm notices, payments, or transcripts. Watch for mismatched details or sudden changes.

Solution 3: Freeze Credit Reports

Prevent criminals from opening accounts using stolen data. Freezes are free and reversible through Equifax, Experian, and TransUnion. Thaw temporarily when applying for legitimate credit.

Freeze Command: Use these direct links to initiate freezes:

– Equifax: https://www.equifax.com/personal/credit-report-services/credit-freeze/

– Experian: https://www.experian.com/freeze/center.html

Solution 4: Monitor Financial Activity

Enable transaction alerts via your bank’s app and review IRS transcripts quarterly. Set up credit monitoring with IdentityTheft.gov to detect unauthorized activity early.

IRS Transcript Request: Retrieve past returns via https://www.irs.gov/individuals/get-transcript. Compare against filed documents for discrepancies.

People Also Ask:

• Q: How would the IRS contact me? A: Only via mailed letters – never email, text, or social media.
• Q: Can scammers file my taxes before me? A: Yes – file early to block fraudulent submissions.
• Q: What if I shared my SSN with a scammer? A: Immediately request an IRS Identity Protection PIN (IP PIN).
• Q: Are “tax relief” services legit? A: Most are predatory – use IRS Free Debt Resolution first.

Protect Yourself:

• Shred tax documents before disposal.
• Never store sensitive data in email/cloud drives.
• Verify tax preparer PTIN numbers at IRS.gov.
• Use a VPN when filing taxes on public Wi-Fi.

Expert Take:

“January scams thrive on fabricated urgency. Legitimate agencies give you time to respond. If pressured to act instantly, it’s fraud.” – Carla Diaz, FTC Financial Crimes Division.

Tags:

• IRS phishing scam reporting
• how to freeze credit after tax fraud
• best secure tax filing software 2024
• how to get IRS identity protection PIN
• signs your tax preparer is a scammer
• recover from tax identity theft

*Featured image via source

Edited by 4idiotz Editorial System