During tax season, where many individuals find themselves navigating complex rules and deadlines, tax scams have unfortunately become a frequent occurrence. These scams range from identity theft to phishing, and they're not always easy to spot. As we delve into some of the most popular scams, remember that staying informed is your first line of defense.

1. Identity Theft Tax Refund Fraud: This scam involves thieves using stolen personal information, like Social Security numbers, to file tax returns and claim fraudulent refunds. You might be unaware of this until you file your taxes and discover that a return has already been filed using your information.

2. Phishing: This occurs when scammers use fake emails or websites to collect personal and financial information. These emails often look like they're from the IRS or another trusted source, but the IRS never initiates contact with taxpayers via email about a bill or refund.

3. Impersonation Scams: Callers pretend to be IRS officials and demand immediate payment of taxes owed. They often threaten arrest or other legal action. Remember, the IRS will first mail a bill to any taxpayer who owes taxes.

How to Spot and Avoid These Scams

• Be wary of emails and phone calls asking for personal information, especially if they're aggressive or threaten legal action.
• The real IRS won’t contact you by email, text message, or social media to get your financial information.
• Know that the IRS doesn't demand immediate payment using a specific payment method, like a prepaid debit card, gift card, or wire transfer.
• The IRS doesn’t send tax refunds by email or text.
• The IRS will not threaten to bring in local police, immigration officers, or other law-enforcement to have the taxpayer arrested.

What to Do If You Suspect a Scam

• If you see a tax scam, even if you didn’t lose money, report it to the FTC at ReportFraud@ftc.gov.
• Visit the IRS website to learn how to take action.

Learn More At Astra Bank’s Security Center

The best defense against scammers is to stay educated on how they operate, the common tactics they use, and what to do if you believe you have become a victim. Visit Astra Bank’s Security Center to learn more about how to keep your identity and financial information safe.