Scam warnings from the IRS are red hot right now. Now scam artists are targeting your entire tax return. The IRS says the “entire tax preparation community must be on high alert this filing season…” Their reasoning is as obvious as last year’s news; we must take extra care to protect our data “because of numerous database breaches in 2017, including the massive
Beware. IRS warns that hackers are stealing tax refunds.
Equifax breach.”
And the IRS has extended special warnings to accountants and tax preparers, saying, “Taxpayers and tax preparers must be on the alert for a malicious new scam that could deprive you of your entire tax refund.” However, as of the few days in February, the alerts became more frequent and more intense.
We are bringing our clients world-class security. Plus, we are making every extra effort to keep advocate for cyber-safety at every turn, with blog articles like this one. In spite of massive coverage on the news media, we want to be sure all of our readers hear about the insidious scam and how it works. And this isn’t some dusty scheme from months ago. It’s a fresh new warning published March 1st, 2018.
IRS Alerts Taxpayers to Cyber-criminal’s Latest Scam
“The IRS warns taxpayers of a new twist on an old scam.” They add, “Criminals are depositing fraudulent tax refunds into individuals’ actual bank accounts, then attempting to reclaim the refund from the taxpayers.”
You might have seen the story on the late-breaking news. But it flashed by you so quickly it did not quite register. The essential malicious trick is complex and closely related to the cyber crime of identity theft. Thus, on the surface, you might wonder how in the world the scammer could get a pay-off by putting money in your account.
Below, See the Basic Steps Criminals Follow to Carry out this Scam:
The thief must accomplish a number of steps to get to the payoff.
Your Tax Refund-Is It Real or Is It A Scam?
First Step: He (or she) must hack into a tax preparers’ computers system and steal your taxpayer data.
Second Step: The thief utilizes the data to actually file a fraudulent file tax return as if he is you.
Third Step: Naturally, he allows the IRS to deposit your refund into your bank account. And it’s a nice one too. You are ecstatic that the refund came so quickly and a little puzzled.
The cyber thief contacts you. He or she tells you they deposited the money into your account by accident. Then they very brazenly explain the reasons that the money was mistakenly deposited into your account.
Then Comes the Final Step: They ask or demand that you return the money. And they give you a procedure and an address. Of course, that address has nothing to do with the IRS. It is simply theirs, as is your money.
Variation on a Scamming Theme: Number One
The IRS also warns taxpayers to watch out for so-called collection company agents who are thieves posing as IRS officials. A thief contacts a tax payer as if he is on a mission for the IRS. And he or she actually persuades the unsuspecting, usually by phone, to forward the money to the thief’s “collection agency.”
An Equally Savage Variation of the Theme: Scam Two
You surprisingly receive your refund, but then a recorded voice states “the call is from the IRS, although it is automated.
And this is the point at which the caller becomes very intimidating.
An exciting tax refund might be the result of a scam. Be sure before you celebrate.
The aggressive recorded voice threatens victims three ways:
1. He bullies the taxpayer with threats of criminal fraud charges.
2. The thief boasts about an arrest warrant.
3. Likewise, he promises there will be a “blacklisting” of his or her Social Security number.
4. As the original scam described in this article, the recorded voice gives the taxpayer “a phony
case number and telephone number to call to return the refund.” Of course, that number and the refund belong to the thief.
Experts Reveal Devious Methods of Hacker Contact
Experts at the IRS and multiple security firms are warning taxpayers to be wary of the emails and email attachments that they open. Ironically the IRS does not use calls or robo calls to ask you for money, but scammers who impersonate the IRS, do.
Darren Guccione of Keeper, a cyber-security firm, stated, “Every way they can contact you, they are doing it – robo calls, physical calls, emails, every possible way they can try to defraud you they are doing it and doing it at a high frequency right now.”
What if I Really Do Receive an Erroneous Refund?
At AP Accounting and Tax Services, we want you to be aware there is a protocol in place were you to receive an authentic but erroneous tax
A Watchful Eye: At AP Accounting and Tax Services, we monitor our world class security.
refund. It is published online under the Tax Topic Number 161.
It has “full details about how to return the money, including the actual mailing addresses where a taxpayer should send a paper check, if necessary. By law, interest may accrue on erroneous refunds.”
If you receive an erroneous amount on your refund, both the IRS and AP Accounting and Tax Services advise you to go to the bank or financial institution and inform them.
You see, you might need to cancel some credit cards or close bank accounts. Remember, this type of threat often is just a part of the grander scale of identity theft.
Likewise, we remind you to contact your tax preparers immediately, if you should receive an unexpected and erroneous tax refund. Be cautious.
A Terrific Take-away from your Tax Tip Specialists
at AP Accounting and Tax Services:
“More than 12,000 victims have lost $63 million for fake IRS calls from thieves trying to fool people into sending money. But the IRS said they will never call you demanding immediate payment.” Never.
Not Ready For A Refund? You Still Haven’t Filed Your 2017 Income Tax?
Many companies and individuals are concerned that they may not be able to file Income Taxes on time. If you are still struggling, our Tax
AP Accounting and Tax Services brings you help in this year of challenges.
Tip Specialists at AP Accounting and Tax Services can help. Changes in Tax Code has created confusion as to what is or is not deductible.
Did you know that personal deductions have increased dramatically? Also, there have been changes in State and Local Tax deductions. You may not be able to deduct alimony.
Business expense deductions and moving expenses are only deductible under certain conditions. You can spend a great deal of time searching for personal deductions. Then you find out, the new standard deduction has eliminated the need.
If you need help on personal or business tax matters, call or email. The tax deadline clock is ticking but we can can still set up an appointment for you.
Remember, finding those deductions that you might have forgotten or overlooked is a part of what we do.
Meanwhile, even as we rush to help clients make that tax deadline, we take a moment to thank you for reading the A.P. Accounting and Tax Services blog. We appreciate you. Happy Filing!
