Tis The Season: W2’s, 1099’s and Scammers

It’s nearing the end of January, the Holidays are past and we’re all getting back into the swing of things. This time of year also brings with it a seasonal menace: Tax Scammers. In the United States, January and February become a time that many Americans begin to receive their W2 forms and various tax documents. In fact, January 27^th is the official start date of US Tax filing.

Criminal scammers often try to leverage current events as a part of their hook to entice unsuspecting people into performing activities that are a benefit to the malicious actors. It could be confirming that a phone number or email address is valid, or in worst case examples transferring money to the scammers.

Ensure you and your loved ones stay safe during the tax/scamming season; recognize some of the common tactics that spammers use.

Text Scams (aka Smishing)

Text scams, also known as SMS scams or Smishing, are fraudulent messages sent via text that aim to deceive recipients into providing personal information, clicking on malicious links, or making financial transactions. They can take various forms, and understanding these can help you recognize and avoid them.

1. The IRS Tax Scam: Many individuals have received texts claiming to be from the IRS, stating they owe back taxes and must pay immediately to avoid arrest. Victims often panic and provide personal information or make payments, only to find out they were scammed.  An example of a scammer’s text message can be seen below:   

2. Delivery Scams: With the rise of online shopping, delivery scams have become common. You might receive a text claiming that your package is on hold and requires action. For example, “Your delivery is pending. Click here to resolve the issue.” These messages often lead to phishing websites or malware downloads.  During this time of year the scam may be adjusted to speak to delivery of tax documents.

It’s also important to note that criminals may also leverage emails, as well as direct phone calls as their initial hook to trick victims. Be VERY wary and cautious. Click into the details of emails to see who they are from and who they are to. In the below example ( a quick pull from my own spam folder) we see this message was sent “to me, from me” (not true). The sending domain is long and has inc.gov within it but ends differently.

Know that, according to the IRS.gov website, the IRS will not reach out via a phone call or SMS text message; they will initially reach out via the US Postal Service. But, also be mindful of scammers sending letters via USPS.

Anytime you’re being instructed to:

• • Load money on gift cards
  • Visit a website that is behind a URL shortened URL
  • Provide personally identifiable information
  • Send Cash

It is probably safe to assume this is a scam and to hang up. Especially if the communication is unprompted. When in doubt, discontinue communication with the person and reach out to the organization that they claim to be from. Don’t leverage any of the numbers or the emails given. For example, navigate to the IRS.gov website yourself, or call their fraud line. If the message or call is coming from a supposed bank or financial institution lookup the number yourself and call them and inquire.

Scammers are often trying to establishing communication to further attempt to scam people. Their initial message may be simply trying to get victims to visit links or call them. Upon continuing to communicate or following the instructions the scammers can continue their attack, and coerce victims into parting with their data, or money.