Financial fraud exists throughout the year but becomes far more rampant and aggressive when tax season comes around. Every year, the IRS publishes a list of common tax scams that people should be aware of so they can avoid becoming a victim.
The IRS’ Dirty Dozen tax scams
The IRS’ Dirty Dozen is an annual list of common tax scams that the agency says taxpayers may face at any time but particularly during tax-filing season.
- Phishing: This involves the scammer sending fake emails to the consumer with malicious links intended for stealing personal and financial information.
- Fake charities: Commonly seen during a natural disaster, fake charities trick consumers trying to help during times of need into sending money to unscrupulous entities.
- Impersonation: Often taking many forms, impersonation usually occurs through phone or email, threatening the consumer with dire consequences (driver’s license revocation, arrest, etc.) if they do not make immediate payment to the IRS.
- Social media scams: Because social media allows rampant sharing of information, scammers take advantage of this to impersonate the victim’s friend or family member and send them messages soliciting money or other forms of financial or personal information.
- Refund theft: A type of identity theft, refund scams involve fraudsters filing fake tax returns to the IRS with the intention of diverting refunds to wrong addresses or bank accounts.
- Senior fraud: This involves the theft of personal…
