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Cyber Thieves Are Phishing You: Don't Take the Bait!

by
Steward Financial
on
9/21/2017
Cyber Thieves Are Phishing You: Don't Take the Bait!

Are you up to here with warnings about scammers trying to take your hard-earned money? Between word of people trying to rip off Hurricane Victims, thieves trying to trick old people into questionable investments, and Nigerian princes wanting to send you a few million, it’s understandable for you to be feeling fraud fatigue. Unfortunately, you have to move past it and pay attention, because the scam situation is getting worse instead of better.

If you have any doubt as to whether this is true, consider this: for the past several years a tax update instructor has begun his annual lecture to tax preparers, CPAs and Enrolled Agents by talking about fraud asking how many of them had personally come across a client whose identity had been stolen or for whom a false return had been filed. This past year he found that almost 50 percent of those present had encountered these types of fraud, where just a few years earlier only one or two had any experience with it.

Need more convincing? Just take note of how many letters the Internal Revenue Service has been sending out to accountants and tax preparers, warning them to pay attention and protect their clients. They’re also issuing bulletins to taxpayers. All of them warn about the various methods that scammers are using to steal credit card information, to file tax returns using other people’s Social Security Numbers, and to access people’s hard-earned money held in bank accounts. 

So who is behind these scams, and how are they doing it? There are so many methods and schemes being used that you’d think the thieves would have exhausted their creativity – yet they continue to come up with new methods.  Given the fact that there’s a good chance that there will be something new on the horizon every day and this summary is by no means exhaustive, here is a list of the most frequently seen phishing and scamming schemes:

  • Emails and Telephone Calls Claiming to Be From the IRS – When the IRS wants to get in touch, they never use email or the phone, so if you get a call saying that the IRS is hot on your trail for nonpayment, hang up. If you get an email claiming to be the IRS asking for information so that they can process your return, delete it. If you just can’t delete an email on the off-chance that it is legitimate, send it us and we’ll check it out. In fact, no matter what type of correspondence you get about taxes, your first step should be to send it to a tax professional for review. That way, if it is legitimate, we can address it, and if it is a scam, you can avoid a lot of headaches in the future.
  • Don’t Click – Just Don’t! – The internet has proven to be a big boon for scammers who use interesting looking links within the body of emails to install malware on your phone, tablet or computer. Once you’ve clicked on a link, they have you – it will download viruses or software that can automatically search your computer for your passwords, account numbers, and other personal information. This is true for links from people you don’t know and jokes or links sent by friends or colleagues. Even though they may send them to you with the best, most innocent intentions, they could unknowingly be sending you an infected link.
  • If It Sounds Too Good to Be True, It Is Too Good To Be True – Remember the old line about there being no such thing as a free lunch? When you get a notice that you’ve won a prize or are entitled to some kind of inheritance, refund, or prize that you weren’t expecting, be very, very skeptical. This is one of the scammers’ favorite methods of tricking people into dropping their guard and giving out personal information that allows them to steal identities or cash.
  • Any email from a person or organization that you don’t know should be viewed with suspicion – this is especially true if it is asking for any information. You also need to be careful of emails that appear to be from a financial institution that you have (or don’t have) a relationship with. If you get something asking you to re-enter a password or any other confidential or specific information, don’t click the links in the email. If you think there’s a chance it might be real, still don’t click – open a new browser window and connect directly with the website. 

Think about how clever some of these schemes are, then think about how easily an older person who is less familiar with email or the Internet could be fooled. The elderly are frequently the targets of identity theft and fraud, and too often the scams are successful because they are either unsuspecting or easily frightened by threats. It’s a good idea to sit down with any older people in your lives, whether family, friends or neighbors, to make sure they are fully educated about the threats that are out there.

Unfortunately, despite all the right precautions and warnings, people still get fooled or taken advantage of. If you think your personal information has been compromised, call us right away. We will contact the IRS to make sure that they are aware that you may be a victim – as the agency has taken many steps to provide protection for taxpayers. Remember, we are here to help you with any correspondence you receive that is tax related, regardless of legitimacy. Call us if you receive anything questionable to make sure your financial information and security is safe.

The IRS has special provisions for victims of ID theft, so if you ever believe your identity has been compromised, contact a tax professional immediately so steps can be taken with the IRS to protect your tax filings. Always talk to a tax professional before acting on or responding to the IRS or other taxing authorities. It’s better to be safe than sorry. 

Jon Osborn, EA writes for TaxBuzz, a tax news and advice website. Reach his office at [email protected].

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Steward Financial

Steward Financial

Jon Osborn is a tax preparer based in San Dimas, California. His company, Steward Financial Services, offers a broad range of tax preparation, accounting and business consulting for small businesses. He loves to work with clients who are looking for answers to complex tax and business planning issues. He has owned several small businesses and worked with over one hundred small business owners. He helps his individual and business tax clients find the best ways to spend their money in order to minimize IRS tax. Small businesses looking to grow, sell or just increase cash flow are one of Jon's specialties.

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