As the tax season draws near, it is important that consumers stay wise to the always changing world of tax scams. Scammers are getting more sophisticated, using technology to look like trusted organizations such as the IRS and lure victims in to steal important data. OverTraders.com is the place to prepare yourself with the knowledge and tools to be prepared. We can guide you through these treacherous waters and safeguard your hard-earned dollars! This article explores some of those tech-driven innovations. These tools and others like them equip people to recognize and avoid tax-related fraud, including helpful apps and online resources.

Effective Strategies to Safeguard Your Data from IRS Scammers

Protecting yourself from IRS scams takes both technology and good security habits. By taking these simple, proactive steps, consumers can help protect themselves from becoming the next victim in these types of schemes.

1. File Your Taxes Early

Filing taxes in advance is one of the best forms of tax fraud deterrent. Criminals often target people who are still waiting to file their tax return. They use that stolen personal information to file false returns and get refunds in someone else’s name. By filing returns early, people can get ahead of these scams and make sure their real tax returns are processed without any trouble.

2. Understand IRS Communication Methods

The IRS always communicates with taxpayers through official channels, including the mail and secure portals like IRS.gov. Note: the IRS will never contact you via email, phone, or video chat to request your personal or financial details. Stay safe out there and keep your sensitive information close to the vest! Any out-of-the-blue inquiries you get through these channels should be considered suspicious to the highest degree.

3. Disregard Suspicious Payment Requests

These scammers typically employ aggressive language and stressful due dates to coerce people into handling immediate payments. Or they could insist on payment using non-traditional means, like gift cards or wire transfers that are hard to track. The IRS warns that legitimate communications from them will never require that you pay immediately with these forms. If you get a payment request that doesn’t seem right, don’t take any action. Instead, contact the IRS directly to confirm whether or not it is legitimate.

4. Activate Your IRS PIN

To combat this, the IRS provides an Identity Protection Personal Identification Number (IP PIN). This unique six-digit number provides an extra layer of protection for taxpayers by protecting them from identity theft. During tax filing, taxpayers assigned an IP PIN then will need to input that number on their federal tax return in order to confirm their identity. This PIN provides an additional layer of security and prevents scammers from filing fraudulent returns using their name.

5. Verify Links Before Clicking

Phishing emails and text messages often have malicious links. Each one of these links take users to fraudulent websites designed to capture their valuable personal information. Before you click on any link, even this one, you should check to make sure it’s real. Replace this with the URL now hidden by our link shortener. Check that it looks like the official website of the organization it purports to represent. If the new link seems suspicious or unexpected, don’t click on it at all.

6. Ensure a Secure Internet Connection

When taking care of taxes or any kind of sensitive financial information online, it’s absolutely imperative that you’re doing so on a safe internet connection. Don’t use public Wi-Fi networks, which are typically unsecured and open to hacking. Connect to a private, password-protected Wi-Fi network or a mobile hotspot. This will ensure none of your data can be intercepted and read by any prying eyes.

7. Develop Unique Credentials for Tax Filing

Protecting sensitive taxpayer data must be a top priority. Make sure your passwords are long and unique to all of your online accounts, especially those connected to electronic tax filing like IRS accounts, tax preparation software, and email accounts. Never reuse passwords on different sites, and use a password manager to create and save complicated passwords safely.

AI-Driven Tax Scams to Watch Out For

The emergence of artificial intelligence (AI) has created new and advanced ways for scammers to commit tax fraud. Fraudsters have recently turned to AI to impersonate people, tax preparers, and IRS employees. This significantly increases the difficulty for individuals to identify fraudulent communications from legitimate communications.

Spearphishing

Spearphishing is a more targeted form of phishing, that’s focused on creating more personalized emails or messages directed at specific individuals or organizations. Criminals do this by fishing for personal information across social media, online databases, and other easily-accessed places. They develop believable-looking communications to manipulate people into taking action such as clicking on malware-infested links or sharing confidential information.

Now AI-generated voices are increasingly being used to impersonate IRS agents and tax professionals. Yet fake communications continue to become ever more difficult to distinguish from legitimate communications. Be suspicious whenever you get unexpected calls or voice messages. Never assume you know who is calling.

Reporting Tax Scams: Where to Turn for Help

If you think that you or someone you know has fallen victim to a tax scam, these steps should be your next move. The IRS and Federal Trade Commission (FTC) both have specific avenues to report fraud. Protect yourself and others from these thieves’ tricks, act fast—save yourselves!

  • IRS: Report tax scams to the IRS by forwarding suspicious emails to phishing@irs.gov. You may report attacks of identity theft using the IRS’s online Identity Theft Central.

  • FTC: File a complaint with the FTC online or by calling 1-877-FTC-HELP. The FTC relies on these complaints to identify a growing wave of scams and coordinate enforcement actions against the scammers who perpetrate them.

The IRS provides an online identity theft recovery center at identitytheft.gov. You’ll be able to report the scam and start to fix the harm caused by the scammer. To report a phishing attempt, you should use the IRS’ email address to forward the suspicious email to, as well as block the sender and delete the original message. If you believe you have become a victim of tax-related identity theft, here’s what to do immediately. Report the crime to the IRS in real time!

Honest and Reliable Reviews of Security Measures

With threats constantly evolving, you know the importance of protecting your sensitive tax information—so don’t leave your security to chance. Put reliability first when your data is at stake. OverTraders.com is committed to providing honest and transparent reviews. We cut through the clutter to find the best security software, apps, and online resources for our readers.

The public can employ an removal service to proactively track and remove their sensitive information. This new service automates the process of finding and removing data from hundreds of sites over a much longer period. This important service takes powerful steps to prevent identity theft and fraud. It achieves the above by reducing the overall collection of personal data online.

Install reliable antivirus software to protect yourself from phishing links and scam texts. These scams usually involve people pretending to be officials from government organizations such as the IRS. Always keep your antivirus software up-to-date, and make sure that the software automatically scans your computer on a regular basis for various forms of malware and cyber threats.

Be aware and take steps to protect yourself from tax scammers. When you report suspicious activity, you play an important role in helping protect yourself and those around you from these emerging threats. OverTraders.com will continue to provide its readers with the latest news, insights, and resources to help them navigate the complexities of the financial world and safeguard their financial well-being.