Tax scammers on the rise

By Erica Stark, Licensed Financial Advisor, Tax Specialist, Founder of TAPP Financial

The IRS reports that more than 2.4 million people in the United States each year are targeted by phishing and impersonation scams. And worse yet, that number is growing at an alarming rate.

The fraudulent operators communicate with people through bogus phone calls, texts, emails or social media. One of the most prevalent scams, especially this time of year, is the “unclaimed refund” ruse. With cunning simplicity, fraudsters pose as IRS agents or tax prep services, promising unsuspecting taxpayers “substantial refunds for unclaimed tax credits or deductions.”

If you respond to the scam, they will extract your personal information as a means of stealing your identity or money.

When you receive a scam like this, it’s a good idea to report it to the authorities.

For your protection, I always tell my clients the IRS will only communicate with you through good old-fashioned USPS snail mail. Legitimate correspondence will be on official letterhead and provide clear instructions for verifying the authenticity of the communication. You will never be contacted through emails, texts or phone calls (unless you’ve already initiated calls and are working with someone).

And for further protection, the IRS has come up with something called the Identity Protection PIN, a six-digit number you are electronically assigned yearly that must be included on your tax returns. I recommend people concerned with security opt in for one on the IRS website for peace of mind. By proactively participating in this program, you can significantly reduce your risk of falling victim to identity theft or tax-related fraud.

For more information and details on other scams to watch for, check out my website. If you have any questions, feel free to give me a call.

TAPP Financial is located at 7003 Pearl Road, Suite 17B, in Middleburg Heights. Call 440-885-3133 or visit Tapp-Financial.com.