How not to fall for Phishy IRS calls and other Scams

These days, nearly all of us get calls, e-mails and text messages trying to gain access to our finances.  You have probably seen or heard of the call “from Amazon” about a new iPhone order, the call “from Social Security” indicating that your number has been suspended, which requires your immediate action with someone on the phone, the e-mail with a “voicemail message” attached for you to click on to hear, and the e-mail with an “invoice” for you to approve.  There are many more forms and styles, and more keep coming.

This post focuses on the calls purporting to be from the IRS, and the purpose of this post is to help make you more wary so you do not fall victim to any of these scams. 

The IRS recently posted its dirty dozen for 2021, a list of scams that focuses on Pandemic-related scams, like unemployment claims, but also fake charities, urgently seeking donations, and offer in compromise scams, claiming to have ways to reduce your taxes owed.  There are other scams that target elderly or people for whom English is a second language.  And some scams offer to file conservation easements and improper business credit claims for you.   

Calls “from the IRS”

The call insisting that you owe the IRS and need to pay is a scan that has been around for some time.  The IRS website, and the recorded message when you are on hold contacting the IRS, says:

  • The IRS won’t initiate contact by phone, email, text or social media asking for Social Security numbers or other personal or financial information. 
  • The IRS generally first contacts people by mail – not by phone – about unpaid taxes.
  • The IRS may attempt to reach individuals by telephone but will not insist on payment using an iTunes card, gift card, prepaid debit card, money order or wire transfer.
  • The IRS will never request personal or financial information by e-mail, text or social media.

Furthermore, the IRS will ask you to confirm your identity before discussing any tax matters with you. 

Protect your tax filings

To help insure that no one can file under your social security number, the IRS suggests obtaining an ID PIN for filing your tax returns.  The PIN is now available to all taxpayers; you include it when you file your tax returns so that the IRS can verify that it is you filing.  This prevents others from filing bogus refund claims under your social security number. 

You can also include your driver’s license when filing, so the IRS and state revenue departments can verify that it is you filing, not an imposter. 

Be Vigilant

To protect your finances, you need to be vigilant.  Before you answer the phone, what does the caller ID say?  Is it a legit company or “unknown”?  Before you respond to an e-mail, does the address look like a real customer service company site or something random?  Is the grammar or content in the call or message off?  If it seems off, it probably is. 

Usually, you can find safe and easy ways to confirm the information in question by placing your own call or logging onto the related website online, rather than responding directly. 

The IRS recommends setting up multi-factor identification to access your financial information.   The IRS suggests more steps here:

  • Using anti-virus software and set it for automatic updates. Anti-virus software scans existing files and drives on computers – and mobile phones – to protect from malware.
  • Using a firewall to shield digital devices from external attacks.
  • Using backup software/services to protect data. Making a copy of files can be crucial, especially if the user becomes a victim of a ransomware attack.
  • Using drive encryption to secure computer locations where sensitive files are stored.  Encryption makes data on the files unreadable to unauthorized users.
  • Creating and securing Virtual Private Networks. A VPN provides a secure, encrypted tunnel to transmit data between a remote user via the Internet and the company network. Search for “Best VPNs” to find a legitimate vendor; major technology sites often provide lists of top services.

Conclusion

If something smells “phishy,” it probably is.  So be cautious, even suspicious of interaction asking for personal and financial information.  Set up two-factor verification and an IRS PIN.  And let me know if you have questions or concerns.  I will try to help.