As Tax Season Approaches, Stay Vigilant—It’s Also Scam Season

Tax season is a critical period for individuals and business owners, but it’s also a prime opportunity for scammers to exploit unsuspecting taxpayers. In light of recent data breaches and the surge in sophisticated scams, it’s essential to remain vigilant and informed about fraudulent activities, especially those related to taxes.
This blog explores two primary targets of scammers:

1. Individuals: IRS Impersonation Scams
2. Business Owners: Fake Vendor, Fake Business Partnership, and Invoice Scams

Understanding how these scams operate and implementing protective measures can help safeguard your personal and financial information during this tax season and beyond.

1. Individuals: IRS Impersonation Scams

Scammers often pose as IRS agents to intimidate individuals into disclosing sensitive information or making payments. These impersonators take advantage of taxpayers’ fear of the IRS to manipulate them into acting quickly and without verification. Here’s how these scams typically unfold:

How It Works

• Phone Calls and Voicemails: Fraudsters call or leave voicemails claiming to be IRS officials, threatening legal action, arrest, or penalties if immediate payment isn’t made.
• Text Messages and Emails: Scammers send phishing texts or emails with links to fake IRS websites, aiming to steal personal information or install malware.
• Mail Scams: Some even send counterfeit IRS letters that appear official but contain fraudulent payment instructions.

Red Flags to Watch Out For

• Demand for Immediate Payment: The IRS will never demand immediate payment without first sending an official notice by mail.
• Requests for Specific Payment Methods: Be wary if asked to pay via gift cards, wire transfers, or cryptocurrency; the IRS does not use these methods.
• Threats and Pressure Tactics: Threats of arrest, license suspension, or deportation are signs of a scam.

How to Protect Yourself

• Verify Communication: If you receive suspicious contact, do not respond. Instead, reach out to the IRS directly at 1-800-829-1040 to confirm the legitimacy.
• Avoid Clicking on Links in Emails or Texts: Scammers often include malicious links that can steal your information or install harmful software. Always access the IRS website by typing the URL directly into your browser.
• Regularly Monitor Financial Statements: Review your bank and credit card statements every 30 days for unauthorized charges, allowing ample time to dispute them if necessary.
• Report the Scam: If you suspect fraud, report it to the Treasury Inspector General for Tax Administration (TIGTA) at www.treasury.gov/tigta or forward phishing emails to phishing@irs.gov.

Stay Cautious: The IRS does not initiate contact via text, email, or social media. Official communication is conducted through mail.

2. Business Owners: Be aware of Fake Vendors, Business Partnerships, and Invoice Scams

Business owners are increasingly targeted by scammers impersonating vendors, suppliers, or business partners to deceive companies into making fraudulent payments or revealing sensitive information. These scams are becoming more sophisticated, with scammers impersonating legitimate businesses with alarming accuracy.

How It Works

• Fake Invoices: Scammers send invoices for products or services never ordered, often using familiar company names or logos to appear legitimate.
• Phishing Emails from “Vendors”: Fraudsters pose as vendors or suppliers, requesting payment or changes to payment details, directing funds to their accounts.
• Fake Business Partnership and Referral Scams: Scammers reach out pretending to be from reputable companies, offering partnership or referral opportunities. They share authentic-looking website links and email signatures, but the contact information is fake. These scams often:
  • Impersonate real businesses by using slightly altered email addresses (e.g., .co instead of .com).
  • Share genuine website information to build credibility, but all communication redirects to the scammer.
  • Use generic contact details without a direct point of contact, making it challenging to verify authenticity.
  • Often lack detailed business information or use generic titles like “Business Development Team.”
  • Request urgent action or a quick decision to pressure the recipient.

Red Flags to Watch Out For

• Unfamiliar Vendors or Business Proposals: Receiving invoices or partnership offers from unknown companies is a significant warning sign.
• Changes in Payment Instructions: Requests to alter payment details should always be verified through established contacts.
• Emails from Impersonated Reputable Businesses: Check for:
  • Slight misspellings or variations in the sender’s email address.
  • Generic contact information without specific names or departments.
  • Urgent requests that pressure you to act quickly.

How to Protect Your Business

• Implement Verification Procedures: Confirm all invoices and payment requests directly with vendors using known contact information. Verify partnership offers by reaching out through the company’s official website or known phone numbers.
• Educate Employees: Train staff to recognize phishing attempts and fraudulent invoices, emphasizing verification of payment requests.
• Be Cautious of Partnership Offers: If approached by another business for referrals or partnership opportunities:
  • Research the business independently. Do not use the links or contact details provided in the email.
  • Contact the business using official channels listed on their legitimate website.
  • Be cautious if the email lacks detailed business information or uses generic titles.
• Use Secure Payment Methods: Opt for secure payment options that offer authentication and tracking.
• Regularly Review Financial Statements: Conduct routine audits to detect unauthorized transactions promptly.

Stay Vigilant: Scammers continually adapt their methods. If something seems suspicious, verify before proceeding.

Recent Data Breaches and Their Implications

Recent data breaches have compromised personal and financial information, increasing the risk of scams:

• Healthcare Sector Breaches: In January 2025, Community Health Center, Inc. experienced a breach affecting over one million individuals, exposing sensitive medical and personal data.
• Financial Sector Breaches: Globe Life Inc. disclosed a breach impacting approximately 850,000 individuals, significantly higher than initially reported.

These incidents highlight the importance of monitoring your financial accounts and being cautious of unsolicited communications.

Conclusion: Protect Yourself This Tax Season

Tax season presents opportunities not only for financial growth but also for scammers seeking to exploit vulnerabilities. By staying informed and implementing protective measures, you can reduce the risk of falling victim to fraud.

Key Takeaways:

• Be Skeptical of Unsolicited Communications: Verify the identity of anyone contacting you regarding financial matters.
• Monitor Financial Accounts Regularly: Frequent reviews can help detect unauthorized activities early.
• Educate Yourself and Your Team: Awareness is a powerful tool against fraud.
• Report Suspicious Activities: Timely reporting can prevent further scams and assist in investigations.

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