There Are Scammers During Tax Season, Too!
Tax season usually brings one of two things: a bit of stress over what you owe, or the excitement of a pending refund. Unfortunately, scammers are also looking forward to your tax return.
At our credit union, we want to make sure your hard-earned money stays in your pocket. To help you stay one step ahead, we’ve rounded up the most common schemes circulating right now and how you can spot them before they spot you.
- The “IRS” is Calling? Think Again.
The Internal Revenue Service (IRS) is a bit old-fashioned—and in this case, that’s a good thing. The IRS will never initiate contact with you via social media, text, or email to ask for your personal or financial details.
If you receive a high-pressure phone call threatening legal action or demanding immediate payment, take a breath. The IRS does not:
- Leave “urgent” or threatening voicemails.
- Demand payment via gift cards, wire transfers, or cryptocurrency.
- Ask for your credit card numbers over the phone.
- Viral “Tax Hacks” on Social Media
We’ve all seen the “one simple trick to double your refund” videos on TikTok or Instagram. Be extremely careful. Misleading tax advice is rampant online, often pushed by “ghost preparers” who misrepresent tax credits to inflate your refund.
If a tax preparer promises you a massive refund without looking at your documents, or suggests you claim credits you don’t qualify for, walk away. Filing an incorrect return—even if you did it based on bad advice—can lead to audits and heavy fines.
- “Guaranteed” Returns and Crypto Traps
If you get a refund this year, you might be looking for ways to grow it. Scammers know this and often promote “tax-saving” investment programs or offshore crypto platforms with guaranteed high returns.
Remember the golden rule of finance: All legitimate investments carry some level of risk. If an offer seems too good to be true or requires an “urgent” deposit to catch a limited-time window, it’s likely a scam. Always verify investment firms through the SEC or FINRA before sending a single dime.
- The Heartstring Hustle (Romance Scams)
It sounds cold, but scammers often use “love” to get to your bank account. Romance scams involve someone building a relationship with you online, gaining your trust, and eventually spinning a tale of financial distress.
They may ask for your tax refund to help with a “medical emergency” or a “travel visa” so you can finally meet. Never send money to, or accept funds from, someone you have only met online. —
How to Protect Your Accounts
The best defense is a good offense. Stay proactive by following these simple steps:
- Verify the Source: If you’re unsure about a financial offer, call us directly or visit our branch.
- Use Trusted Tools: Only use verified, secure platforms for your banking and investments.
- Report It: If you suspect you’ve been targeted, help others by reporting the incident at ftc.gov.
