Tax season is a prime opportunity for cybercriminals to steal your information and money. From phishing emails to fraudulent tax preparers, the threats are numerous.
Here are seven proactive steps to help you protect your finances:
1. Verify Communications
The IRS never initiates contact via email, text, or social media. Contact is only made via mail or in-person visits after prior correspondence. If you receive an unsolicited message or call claiming it’s from the IRS, it’s likely a scam.
Look up and use official channels to confirm any suspicious communication. For IRS-related concerns, go to the IRS directly or call the official IRS hotline.
2. Monitor Personal Information Closely
Shred sensitive documents, including tax forms, and avoid sharing personal information over unsecured channels.
Use strong passwords and enable two-factor authentication for any online accounts, especially those containing financial or tax-related data.
3. File Early
Filing your tax return early significantly reduces the risk of refund theft. Scammers can’t use your Social Security number for fraudulent claims if you’ve already submitted your return.
4. Use Trusted Tax Professionals
If you’re hiring a tax preparer, ensure they are credentialed, experienced, and have positive reviews. Check their preparer tax identification number (PTIN), which is required by the IRS for professionals preparing returns for compensation.
5. Beware of Unconventional Payment Requests
The IRS will never ask for payment via gift cards, prepaid debit cards, or cryptocurrency. If someone demands payment through these channels, it’s a red flag.
6. Educate Yourself on IRS Procedures
Familiarize yourself with legitimate IRS practices to identify fraud more easily. For instance, the IRS rarely demands immediate payment and won’t threaten law enforcement action over unpaid taxes.
7. Check Your Credit Reports
Regularly monitor your credit score and activity for unusual transactions or new accounts that may indicate identity theft.
Learn additional information on common tax scams from the IRS.
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Robert Eastwood is Senior Vice President, Chief Information Security Officer at WSFS Bank. He has more than 25 years of experience in the information security field, including 20 years at WSFS, most recently as Vice President, Information Security Officer, where he developed and executed a multi-year strategic plan for Information Security. He also holds a number of professional certifications and memberships in the Information Security, IT, and financial services fields.
