You’ve likely received a text or email from an unknown number that didn’t seem quite right. Maybe it stated that you have money available to you or claimed issues with one of your financial accounts. The message might include your actual bank’s name, so it appears legitimate. These texts and emails typically include an urgent message requesting you click a link to claim your money or resolve the issue. Red flag!

This is an example of “phishing” — emails or texts that appear to come from a legitimate source but lure you into divulging passwords or other personal information. If you follow links in texts or emails from a phishing message, you could be directed to a fake website designed to steal your bank account information.

These types of scams crop up year-round, but they increase during tax season.

Here are more schemes to watch out for now:

Fake Charities

Con artists set up bogus charities to solicit donations after natural disasters, often using names similar to well-known, legitimate organizations. Use this IRS search tool to find out if a charity is authentic.

IRS Impersonators

Agency impostors threaten taxpayers over the phone about paying fake tax bills. The IRS doesn't demand immediate payment or financial information over the phone.

Refund Theft

Thieves file false tax returns to collect refunds using taxpayers' information. File your return early before thieves get a chance to do so.

Unscrupulous Return Preparers

Dishonest tax preparers may talk taxpayers into committing tax fraud to get inflated refunds. Avoid preparers who won't sign or include their Preparer Tax Identification Number on tax returns.

Offer in Compromise Mills

Be wary of companies that promise to settle tax debts for "pennies on the dollar" through an IRS "Offer in Compromise." These companies charge high fees to file an Offer in Compromise, even though the taxpayer may not qualify for it. Use the IRS Offer in Compromise Pre-Qualifier toolto see if you would be eligible.

Fake Payments With Repayment Demands

Fraudsters file bogus tax returns and direct the refunds to be deposited into taxpayers' accounts. Then, posing as IRS employees, the fraudsters call the taxpayers to say that the erroneous refunds must be repaid with gift cards. Contact your bank and the IRS if you get such a call.

Payroll and HR Scams

Fraudsters gain access to workers' email accounts and then message their employers to directly deposit paychecks into accounts the fraudsters control. If you're a victim of this business email scam, report it to the FBI Internet Crime Complaint Center.

Ransomware

Victims inadvertently download malware on their computers that blocks access to their files. Then they receive demands for payment in virtual currency to unblock the files. For protection, the IRS advises taxpayers to use the free multi-factor authentication features offered on tax preparation software products.

As a reminder, MissionSquare will never request your account or personal information over text or email. Always contact your financial institution before clicking a link or providing any personal information to verify a request is legitimate.

Disclosures

^{MissionSquare does not offer specific tax or legal advice. Please consult with your personal advisor for additional assistance prior to implementing any new tax or legal strategy.}

^{This content provided by MissionSquare includes general information regarding your retirement benefits. It is not intended to provide you with or substitute for specific legal, tax, or investment advice. You may want to consult with your legal, tax, or investment advisor to review your own personal situation. Some of the products, services, or funds discussed herein may not be available in your plan. This document may contain information obtained from outside sources, and it may reference external websites. MissionSquare is not responsible for external website content. While we believe this information to be reliable, we cannot guarantee its complete accuracy. In addition, rules and laws can change frequently.}

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